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A change in the equilibrium price level:

a. will lead to a shift in the aggregate supply curve.

b. will lead to a shift in the aggregate demand curve.

c. reflects a shift in the aggregate demand curve and/or aggregate supply curve.

d. will always lead to stagnation.

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The correct option is:

c. reflects a shift in the aggregate demand curve and/or aggregate supply curve.

Any shift in the aggregate supply curve or aggregate demand curve or both will lead to a change in the equilibrium price level.

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