In the short run, an increase in the price level causes:
A. a rightward shift in the aggregate demand curve.
B. a leftward shift in the short-run aggregate supply curve.
C. a rightward shift in the short-run aggregate supply curve.
D. a movement upward along the short-run aggregate supply curve.
Answer: D
Economics
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If each unit of capital lasts an average of 25 years, then for an economy with a capital stock worth 5 times the annual GDP, approximately what percentage of output must be set aside to replace depreciation?
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