Multiple Choice
Suppose 
, 
, 
, 
,and 
) For any given 
, 
Equals __________ and the economy __________.
A) 0.00;is in its long-run equilibrium
B) 0.05;has experienced a positive aggregate demand shock
C) 1.05;has experienced a positive aggregate demand shock
D) 0.45;has experienced a positive aggregate demand shock
E) -0.15;has experienced a negative aggregate demand shock
Correct Answer:
Verified
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