In the long run
A) both supply and demand shocks have permanent effects on real GDP.
B) real GDP can remain below potential.
C) real GDP can remain above potential.
D) both supply and demand shocks have no effect on real GDP.
E) supply shocks have permanent effects on real GDP but demand shocks have no effect.
Correct Answer:
Verified
Q175: A positive demand shock will
A) shift the
Q176: Q177: If there is a positive demand shock,which Q178: According the AS/AD model,in the long run,expansionary Q179: Stagflation is caused by Q180: The economy's long run aggregate supply curve Q181: The phenomenon of wages in many industries Q183: The aggregate demand curve slopes downward for Q184: The aggregate supply curve describes the same Q185: ]Which of the following describes what would
A) a negative supply
A)
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