A decrease in the aggregate demand curve along the LRAS curve, all other things unchanged, will generate ____ in potential real GDP and ____ in the price level.
A) an increase; no change
B) a decrease; no change
C) no change; an increase
D) no change; a decrease
Correct Answer:
Verified
Q55: Exhibit 14A-1 Aggregate demand and supply model
Q57: Exhibit 14A-2 Macro AD-AS Model Q59: Beginning from a position of long-run equilibrium, Q61: Exhibit 14A-6 Aggregate demand and supply model Q62: Exhibit 14A-4 Macro AD-AS Model Q63: Exhibit 14A-6 Aggregate demand and supply model Q64: Exhibit 14A-4 Macro AD-AS Model Q65: Exhibit 14A-3 Macro AD-AS Model Q133: Along the short-run aggregate supply curve Q135: Along the short-run supply curve (SRAS), 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
