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July 31, 2015

Homework Help: Macroeconomics

Posted by Mac on Wednesday, July 8, 2009 at 6:48pm.

A decrease in aggregate demand will cause

A. aggregate supply to fall according to classical economists, and prices to fall according to Keynes.

B. prices to fall and unemployment to increase according to both classical economists and Keynes.

C. prices to fall according to classical economists, and unemployment to increase according to Keynes.

D. aggregate supply to fall according to Keynes, and unemployment to increase according to classical economists.

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