Question: In the aggregate demand relation, an increase in the price level causes output to decrease because of its effect on: the interest rate which causes

In the aggregate demand relation, an increase in the price level causes output to decrease because of its effect on:
the interest rate which causes a decrease in consumption and investment
government spending which reduces output
the nominal wage that increases the cost of production hence lower output
firms' markup over labour costs
In the aggregate demand relation, an increase in

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