Q 62

If weak aggregate demand is pushing the economy into recession,which of the following must be true? A) The economy is at an equilibrium that is on the long-run aggregate supply curve. B) The economy is at an equilibrium that is on the long-run Phillips curve. C) The economy is at an equilibrium that is not on the long-run Phillips curve. D) Contractionary monetary policies will push the economy back to the long-run Phillips curve.

Multiple Choice