Scenario 14-2
The economy is in long-run equilibrium. Suddenly, due to corporate scandals, international tensions, and the loss of confidence among policymakers, citizens become pessimistic concerning the future. They maintain this level of pessimism for a long time.
-Refer to the Scenario 14-2.In the short-run,which of the following are consistent with the aggregate demand and aggregate supply theory?
A) The price level and real GDP both increase.
B) The price level and real GDP both decrease.
C) The price level rises, and real GDP falls
D) The price level falls, and real GDP rises.
Correct Answer:
Verified
Q143: Figure 14-1 Q145: How does an economic contraction that is Q145: Suppose the economy is initially in long-run Q151: Which of the following has been suggested Q154: Scenario 14-1 Q160: Scenario 14-1 Q170: Suppose there is a decrease in the Q176: Suppose there was an economic contraction caused Q177: Which of the following happened during World Q180: Suppose the economy is in long-run equilibrium.If
The economy is in long-run equilibrium.
The economy is in long-run equilibrium.
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