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 after a recession
E) the rightward shift of the long-run aggregate supply curve that occurs after a recession
Correct Answer:
Verified
Q188: A rapid increase in the price of
Q189: In the long run,
A)total unemployment = frictional
Q190: Figure 9.6 Q191: Suppose the economy is at a short-run Q192: The automatic mechanism _ the price level Q194: _ of unemployment during _ make it Q195: Interest rates in the economy have risen.How Q196: Canada followed the U.S.into recession in 2008, Q197: Figure 9.6 Q198: After an unexpected increase in the price
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