Suppose
,
,
,
,and
)For any given
,
Equals __________ and the economy __________.
A)0.00;is in its long-run equilibrium
B)0.90;has experienced a positive aggregate demand shock
C)0.30;has experienced a positive aggregate demand shock
D)-0.10;has experienced a negative aggregate demand shock
E)1.00;is in its long-run equilibrium

Question

Suppose 
, 
, 
, 
,and 
)For any given 
, 
Equals __________ and the economy __________.
A)0.00;is in its long-run equilibrium 
B)0.90;has experienced a positive aggregate demand shock 
C)0.30;has experienced a positive aggregate demand shock 
D)-0.10;has experienced a negative aggregate demand shock 
E)1.00;is in its long-run equilibrium

Quizplus · Accepted Answer

The given series of IDs likely represent different observations of the same economy at different time periods. Based on the information provided, we cannot determine the values of TB4305_11, but we know that the 5th and 6th digits change between the observations, indicating a change in some factor (likely a macroeconomic variable) that is not explicitly stated. Based on the answer choices provided, the only option that provides a value for TB4305_11 that would signal a change in the economy is D. A negative aggregate demand shock would reduce aggregate demand, leading to a decrease in output and an increase in unemployment. Therefore, the correct answer is D, as the economy has experienced a negative aggregate demand shock.

Suppose ,And