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AP® Macroeconomics

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What Causes a Lower Price Level and Lower Output?

APMACR-LH1RHH

Which of the following would cause a decrease in both the price level and the real GDP of a country?

A

An increase in aggregate demand.

B

An increase in short-run aggregate supply.

C

An increase in long-run aggregate supply.

D

A decrease in aggregate demand.

E

A decrease in short-run aggregate supply.