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QUESTION 30 Aggregate price level x Real GDP in the price level and a decrease in the In the Aggregate Demand and Supply mode

QUESTION 31 Aggregate price level Real GDP In the Aggregate Demand and Supply model (shown), if the governments budget defic

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30. Increase in nominal wages will decrease production because the cost of production has increased. This will be shifting the aggregate supply curve in the short run to the left. General price level increases and real GDP decreases in the short run. the correct choices are increase in the price level and decrease in the equilibrium real GDP

31. A tax cut is likely to increase aggregate demand and shift in the aggregate demand curve to the right. General price level in increase as well as the equilibrium level of real GDP

the correct choices are increase in the price level and increase in equilibrium real GDP.

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