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This question was created from Econ_1A_Exam_3_Spring_2007


15. If an economy is at full employment and investment spending decreases while all other
levels of spending remaining constant then the price level:
A) Increases and output decreases.
C) Decreases and output decreases.
B) Increases and output increases.
D) Decreases and output increases.

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The correct answer: c) decreases and output decreases A decrease in investment spending reduces... View the full answer

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