Consider the basic AD/AS macro model, initially in a long -run equilibrium. A positive AS shock will
The price level and output in the short run. In the long run, the price level will and output
)
A) decrease; decrease; decrease further; will decrease further
B) decrease; increase; decrease further; will be restored to potential output
C) decrease; increase; return to its initial level; will be restored to potential output
D) increase; increase; decrease; will be restored to potential output
E) increase; increase; return to its initial level; will be restored to potential output
Correct Answer:
Verified
Q63: Consider the AD/AS model.Since output in the
Q68: FIGURE 24-5 Q81: The diagram below shows an AD/AS model Q82: The diagram below shows an AD/AS model Q90: In the basic AD/AS macro model,permanent increases Q95: What economists sometimes call the "long-run aggregate Q97: Consider the AD/AS macro model.The main source Q101: Suppose the economy is experiencing an inflationary Q103: The diagram below shows an AD/AS model Q113: The diagram below shows an AD/AS model
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents