Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?
A) the leftward shift of the short-run aggregate supply curve that occurs after a recession
B) the rightward shift of the short-run aggregate supply curve that occurs after a recession
C) the leftward shift of the aggregate demand curve that occurs after a recession
D) the rightward shift of the aggregate demand curve that occurs during a recession
Correct Answer:
Verified
Q186: Short-run macroeconomic equilibrium occurs when
A)aggregate demand and
Q187: Declines in spending on residential construction are
Q188: An increase in aggregate demand in the
Q189: In the long run
A)GDP > potential GDP.
B)unemployment
Q190: Stagflation usually results from
A)a supply shock.
B)a decrease
Q192: Stagflation occurs when
A)inflation rises and GDP rises.
B)inflation
Q193: An increase in investment causes the price
Q194: There has been a decrease in investment.As
Q195: After an unexpected _ in the price
Q196: Interest rates in the economy have risen.How
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