Exhibit 16-5
-Consider Exhibit 16-5.If the economy is initially at point c and aggregate demand increases,the economy will (in the long run)

Name: Exhibit 16-5 -Consider Exhibit 16-5.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 16-5 
-Consider Exhibit 16-5.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, an increase in aggregate demand will lead the economy to move toward the natural level of output, which is typically represented by point a, where the economy is at full employment.

Exhibit 16-5 -Consider Exhibit 16-5.If the Economy Is Initially at Point C