The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-3 Refer to Figure 24-3.Following the negative AD shock shown in the diagram (from to ),the adjustment process will take the economy to a long-run equilibrium where the price level is ________ and real GDP is ________.
A)110; 1000
B)60; 1000
C)90; 900
D)110; 800
E)90; 1250

Question

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.  FIGURE 24-3 Refer to Figure 24-3.Following the negative AD shock shown in the diagram (from  to  ),the adjustment process will take the economy to a long-run equilibrium where the price level is ________ and real GDP is ________.
A)110; 1000 
B)60; 1000 
C)90; 900 
D)110; 800 
E)90; 1250

Quizplus · Accepted Answer

The Answer of The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.  FIGURE 24-3 Refer to Figure 24-3.Following the negative AD shock shown in the diagram (from  to  ),the adjustment process will take the economy to a long-run equilibrium where the price level is ________ and real GDP is ________.
A)110; 1000 
B)60; 1000 
C)90; 900 
D)110; 800 
E)90; 1250

The Diagram Below Shows an AD/AS Model for a Hypothetical