Use the following graph to answer the next question.If aggregate supply shifts from AS1 to AS2, then the price level will ________.

A. decrease and real domestic output will increase
B. decrease and real domestic output will decrease
C. increase and real domestic output will increase
D. increase and real domestic output will decrease

Answer: D

Economics

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The tax multiplier is calculated as 1 / (1 - b)

Indicate whether the statement is true or false

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In the long run, all factors of production are

A) variable. B) fixed. C) materials. D) rented.

Economics