In the SECOND phase of the Keynesian LRAS Curve, when investments increase, what occurs? A. The Average Price Level doesn't change. B. The Average Price Level decreases. C. The Average Price Level increases. D. The Average Price Level flatlines.

C. The Average Price Level increases.

Explanation:

When the price level rises in an economy, the average price of all goods and services sold is increasing. Inflation is calculated as the percentage increase in a country's price level over some period, usually a year. This means that in the period during which the price level increases, inflation is occurring.

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