Multiple Choice
Suppose
, 
, 
, 
, and 
) For any given 
Equals ________ and the economy ________.
A) 0; is in its long-run equilibrium
B) 0.90; has experienced a positive aggregate demand shock
C) 0.30; has experienced a positive aggregate demand shock
D) -0.10; has experienced a negative aggregate demand shock
E) 1.00; is in its long-run equilibrium
Correct Answer:
Verified
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