Multiple Choice

-Refer to Exhibit 9-1.If the economy is self-regulating,the price level is
A) lower in short-run equilibrium than in long-run equilibrium.
B) lower in long-run equilibrium than in short-run equilibrium.
C) higher in long-run equilibrium than in short-run equilibrium.
D) lower when the economy is in a recessionary gap than when it is in long-run equilibrium.
E) a and c
Correct Answer:
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