Figure 8-3
-According to Figure 8-3,what will the price level be in the new long-run equilibrium?
A)115
B)110
C)100
D)Less than 100

Name: Figure 8-3 -According to Figure 8-3,what will the price level be in the new long-run equilibrium? A)115 B)110 C)100 D)Less than 100
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Question

Figure 8-3 
-According to Figure 8-3,what will the price level be in the new long-run equilibrium?
A)115 
B)110 
C)100 
D)Less than 100

Quizplus · Accepted Answer

The new long-run equilibrium price level will be 115 because the aggregate supply curve shifts to the right, causing the price level to fall and the quantity supplied to increase.

Figure 8-3 -According to Figure 8-3,what Will the Price Level Be in Level