Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.

-Refer to Figure 33-7.Suppose the economy starts at Y.If there is a fall in aggregate demand,then the economy moves to
A)V in the long run.
B)W in the long run.
C)X in the long run.
D)Z in the long run.

Question

Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.

-Refer to Figure 33-7.Suppose the economy starts at Y.If there is a fall in aggregate demand,then the economy moves to
A)V in the long run.
B)W in the long run.
C)X in the long run.
D)Z in the long run.

Quizplus · Accepted Answer

The Answer of Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.

-Refer to Figure 33-7.Suppose the economy starts at Y.If there is a fall in aggregate demand,then the economy moves to
A)V in the long run.
B)W in the long run.
C)X in the long run.
D)Z in the long run.

Pessimism Suppose the Economy Is in Long-Run Equilibrium. Then Because of of Corporate