Figure 13-10 shows the short-run macroeconomic equilibrium of an economy. Suppose the economy is currently at Point A. As the economy adjusts from short-run equilibrium to long-run equilibrium, _____.Figure 13-10
A)the price level and real GDP would rise
B)the price level would rise and real GDP would fall
C)the price level and real GDP would fall
D)the price level would fall and real GDP would rise
E)short-run aggregate demand will decrease

Question

Figure 13-10 shows the short-run macroeconomic equilibrium of an economy. Suppose the economy is currently at Point A. As the economy adjusts from short-run equilibrium to long-run equilibrium, _____.Figure 13-10​ 
A)the price level and real GDP would rise 
B)the price level would rise and real GDP would fall 
C)the price level and real GDP would fall 
D)the price level would fall and real GDP would rise 
E)short-run aggregate demand will decrease

Quizplus · Accepted Answer

The Answer of Figure 13-10 shows the short-run macroeconomic equilibrium of an economy. Suppose the economy is currently at Point A. As the economy adjusts from short-run equilibrium to long-run equilibrium, _____.Figure 13-10​ 
A)the price level and real GDP would rise 
B)the price level would rise and real GDP would fall 
C)the price level and real GDP would fall 
D)the price level would fall and real GDP would rise 
E)short-run aggregate demand will decrease

Figure 13-10 Shows the Short-Run Macroeconomic Equilibrium of an Economy