Consider the basic AD/AS macro model in long- run equilibrium. An expansionary AD shock will the price level and output in the short run. In the long run, the price level will
And output .
A) increase; decrease; increase further; will increase further
B) decrease; decrease; decrease further; will be restored to potential output
C) decrease; decrease; decrease further; will decrease further
D) increase; increase; increase further; will be restored to potential output
E) increase; decrease; increase further; will be restored to potential output
Correct Answer:
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Q1: Which of the following would occur as
Q2: Consider an AD/AS model in long- run
Q3: The Phillips curve describes the relationship between
A)inflation
Q4: Consider the AD/AS model and suppose the
Q6: What economists sometimes call the "long- run
Q7: In the long run in the AD/AS
Q8: If the economy is experiencing an inflationary
Q9: Consider the basic AD/AS macro model in
Q10: Consider the AD/AS model, and suppose that
Q11: An inflationary output gap is characterized by
A)constant
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