Suppose
,
,
,
,and
)For any given
,
Equals __________ and the economy __________.
A)0.00;is in its long-run equilibrium
B)0.05;has experienced a positive aggregate demand shock
C)1.05;has experienced a positive aggregate demand shock
D)0.45;has experienced a positive aggregate demand shock
E)-0.15;has experienced a negative aggregate demand shock

Question

Suppose 
, 
, 
, 
,and 
)For any given 
, 
Equals __________ and the economy __________.
A)0.00;is in its long-run equilibrium 
B)0.05;has experienced a positive aggregate demand shock 
C)1.05;has experienced a positive aggregate demand shock 
D)0.45;has experienced a positive aggregate demand shock 
E)-0.15;has experienced a negative aggregate demand shock

Quizplus · Accepted Answer

The given sequence of IDs have the same first 16 characters and differ only in the last 4 digits. Therefore, they represent different observations of the same economy over time. The values of the last two digits in each ID do not provide any information regarding the state of the economy. Therefore, choices B, C, D, and E can be ruled out. The value of 11ea895d_4d85_8052_8397_edab3cd7db89_TB4305_11, which is not given in the question, also does not provide any information about the state of the economy in general. Therefore, the answer is A, which indicates that the economy is in its long-run equilibrium.

Suppose ,And