Chose one from Multiple choice. 3. Which of the following statements is true if there is an increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run aggregate supply curve?   a) Prices rise, national income does not change   B) Prices decrease, national income does not change   C) Prices go up and national income goes down. D) Prices decrease and national income decreases.   E) Prices rise, national income rises

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter20: Aggregate Demand And Supply
Section20.A: The Self Correcting Aggregate Demand And Supply Model
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Chose one from Multiple choice.

3. Which of the following statements is true if there is an increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run aggregate supply curve?

 

a) Prices rise, national income does not change

 

B) Prices decrease, national income does not change

 

C) Prices go up and national income goes down.

D) Prices decrease and national income decreases.

 

E) Prices rise, national income rises

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