
-Refer to the graph in the exhibit.How would long-run equilibrium be established, assuming no government intervention?
A) by an increase in short-run aggregate supply to remove the expansionary gap
B) by a decrease in short-run aggregate supply to remove the expansionary gap
C) by a decrease in short-run aggregate supply to remove the recessionary gap
D) by an increase in short-run aggregate supply to remove the recessionary gap
Correct Answer:
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Q86: Q92: Assume that an economy is operating beyond Q93: Suppose the expected price level exceeds the![]()
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