Solved

-In the Above Figure, If a Is the Initial Equilibrium

Question 49

Multiple Choice

-In the above figure, if A is the initial equilibrium point and there is an unanticipated rise in aggregate demand from AD<sub>1</sub> to AD<sub>2</sub>, then A) the new short-run equilibrium will be at point B. B) the new long-run equilibrium will be at point B. C) the new short-run equilibrium will be at point D. D) real Gross Domestic Product (GDP) per year will fall below Y<sub>1</sub>.
-In the above figure, if A is the initial equilibrium point and there is an unanticipated rise in aggregate demand from AD1 to AD2, then


A) the new short-run equilibrium will be at point B.
B) the new long-run equilibrium will be at point B.
C) the new short-run equilibrium will be at point D.
D) real Gross Domestic Product (GDP) per year will fall below Y1.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q43: An unexpected increase in aggregate demand typically

Q46: Cyclical unemployment is
A) the difference between the

Q50: -In the above</p></div><svg width=

Q52: -In the above</p></div><svg width=

Q60: Which of the following unemployment rates can

Q128: The Phillips curve shows
A)a positive relationship in

Q131: The Phillips Curve will shift when
A) the

Q133: What happens to the Phillips curve when

Q134: The Phillips curve shows
A)the relationship between the

Q136: The short-run Phillips curve suggests what policy

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents