If real GDP is below potential GDP,
A) long-run equilibrium will be achieved once the aggregate demand curve shifts to the right.
B) the economy is in a short-run equilibrium.
C) long-run equilibrium will be achieved once inflation has stopped declining.
D) the economy is in a medium-run equilibrium.
E) long-run equilibrium will be achieved once prices have stopped declining.
Correct Answer:
Verified
Q10: The long run is usually
A)ten years or
Q11: The long-run effect of a change in
Q12: Exhibit 25-1 Q13: The short run is usually Q14: The short-run effects of an increase in Q16: If real GDP stays below potential GDP, Q17: The long-run effect of a decrease in Q18: If a shock to aggregate demand occurs, Q19: The medium run is usually Q20: The initial response of real GDP to
A)less than half
A)the
A)two to three
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