-Refer to Figure 15-11.Suppose the economy is currently at point D where it is producing its full-employment level of real GDP ($6.8 trillion).We would expect that,in the long run,
A) the economy will return to point D unless a demand or supply shock occurred
B) wages will fall and aggregate demand will decrease
C) wages will rise and aggregate demand will increase
D) wages will fall and aggregate supply will increase as the economy moves to point C
E) the full-employment level of real GDP would fall to the equilibrium level of real GDP.

Question

-Refer to Figure 15-11.Suppose the economy is currently at point D where it is producing its full-employment level of real GDP ($6.8 trillion).We would expect that,in the long run,
A) the economy will return to point D unless a demand or supply shock occurred 
B) wages will fall and aggregate demand will decrease 
C) wages will rise and aggregate demand will increase 
D) wages will fall and aggregate supply will increase as the economy moves to point C 
E) the full-employment level of real GDP would fall to the equilibrium level of real GDP.

Quizplus · Accepted Answer

The Answer of 
-Refer to Figure 15-11.Suppose the economy is currently at point D where it is producing its full-employment level of real GDP ($6.8 trillion).We would expect that,in the long run,
A) the economy will return to point D unless a demand or supply shock occurred 
B) wages will fall and aggregate demand will decrease 
C) wages will rise and aggregate demand will increase 
D) wages will fall and aggregate supply will increase as the economy moves to point C 
E) the full-employment level of real GDP would fall to the equilibrium level of real GDP.