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Asked by Kayla Evelyn on Apr 29, 2024

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For a given aggregate supply curve,price level and output will both increase when aggregate demand decreases.

Aggregate Supply Curve

Represents the total quantity of goods and services that producers in an economy are willing and able to supply at a given overall price level in a given time period.

Price Level

Indicates the overall level of prices for goods and services in an economy at a specific point in time, reflecting the economy's cost of living.

Aggregate Demand

Aggregate demand for products and services within an economy at a certain uniform price point during a specified period.

  • Assess the implications of monetary and fiscal measures on inflation, unemployment rates, and the comprehensive economic environment.
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IF
IVANNIA FLORESMay 02, 2024
Final Answer :
False
Explanation :
This statement is incorrect as a decrease in aggregate demand would cause a leftward shift of the aggregate demand curve, leading to a decrease in both price level and output. Only a movement along the aggregate supply curve, such as an increase in production costs or a decrease in resource prices, would cause price level and output to increase together.

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