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Assignment:
Which of the following statements provides the best explanation of the relationship between the price level and total production?
1. the price level always increases whenever total output increases
2. the level of production and the price level are independent of each other
3. as output incraeses, the price level remain fairly constant but then rises more and and more as ouput approaches the full employement level
4. the price level remains constant until the full employement level of output is reached
5. the price level usually decreases as total output rises.
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