Exhibit 10.7

-Refer to Exhibit 10.7, which shows the equilibrium price level and real GDP in an aggregate demand-aggregate supply model. If output was $7.5 trillion at point W and decreases to 7.2 trillion at point H, over the long-run the economy moves from _____

Question

Exhibit 10.7
 
-Refer to Exhibit 10.7, which shows the equilibrium price level and real GDP in an aggregate demand-aggregate supply model. If output was $7.5 trillion at point W and decreases to 7.2 trillion at point H, over the long-run the economy moves from _____

Quizplus · Accepted Answer

In the long run, the economy will move from a point of short-run equilibrium (point H) to a point of long-run equilibrium (point Z).

Exhibit 10.7 -Refer to Exhibit 10.7, Which Shows the Equilibrium Price Level