Equal increases in aggregate demand and aggregate supply

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Reference no: EM13851317

Other things equal, what effect will each of the following have on the equilibrium price level and the level of real output?

A- An increase in aggregate demand in the steep portion of the aggregate supply curve?

B- An increase in aggregate supply, with no change in aggregate demand (assume that prices and wages are flexible upward and downward)

C- Equal increases in aggregate demand and aggregate supply

D- A reduction in aggregate demand in the relatively flat portion of the aggregate supply curve

E- An increase in aggregate demand and a decrease in aggregate supply

Reference no: EM13851317

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