
-In the above figure, if initial equilibrium is at point A and if there is an unanticipated increase in aggregate demand from AD1 to AD2, then
A) in the short run real output will remain at Y1.
B) in the short run real output will increase above Y1, but in the long run it will return to Y1.
C) in the long run real output will increase above Y1.
D) real output will increase above Y1 in both the short run and in the long run.
Correct Answer:
Verified
Q43: An unexpected increase in aggregate demand typically
Q49: Q52: Q60: Which of the following unemployment rates can Q128: The Phillips curve shows Q131: The Phillips Curve will shift when Q133: What happens to the Phillips curve when Q133: The Phillips curve trade-off relationship implies that Q134: The Phillips curve shows Q136: The short-run Phillips curve suggests what policy![]()
![]()
A)a positive relationship in
A) the
A)
A)the relationship between the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents