Exhibit 17-4
-Consider Exhibit 17-4. If the economy is initially at point c and aggregate demand increases, the economy will (in the long run)

Name: Exhibit 17-4 -Consider Exhibit 17-4. If the economy is initially at point c and aggregate demand increases, the economy will (in the long run)
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Question

Exhibit 17-4 
-Consider Exhibit 17-4. If the economy is initially at point c and aggregate demand increases, the economy will (in the long run)

Quizplus · Accepted Answer

In the long run, if aggregate demand increases, the economy will move toward the natural level of output, which is typically represented by point a, where the economy is at full employment.

Exhibit 17-4 -Consider Exhibit 17-4. If the Economy Is Initially at Point