Question: Starting from long-run equilibrium, an increase in aggregate demand a. causes an inflationary gap. b. results in a lower price level. c. increases unemployment. d.

Starting from long-run equilibrium, an increase in aggregate demand

a. causes an inflationary gap.

b. results in a lower price level.

c. increases unemployment.

d. does all of the above.

e. does b and

c, but not a.

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