Oh In the short run and an increase in the price level in the long run. If the economy is initially at full-employment equilibrium, then an increase in aggregate demand causes in real GDP in the short run and in the price level in the long run. O A. an increase; an increase B. an increase; a decrease C. a decrease; a decrease D. a decrease; an increase Which of the following is usually the cause of stagflation? OA. a decline in net exports as a result of a change in the exchange rate B. an increase in investment as a result of a reduction in interest rates C. a reduction in government purchases O D. a supply shock as a result of an unexpected increase in the price of a natural resource
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