The figure below shows equilibrium in an aggregate demand-aggregate supply model.Which of the following will be true of an economy in the long run that is at point M in the short run? Figure 10.4 A)The actual price level will be lower than the expected price level. B)The actual output will fall short of the potential output. C)The short-run aggregate supply curve will remain stable at SRAS₁₀₀. D)The short-run aggregate supply curve will shift to SRAS₁₀₉. E)Real GDP will be equal to nominal GDP.

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The Answer of The figure below shows equilibrium in an aggregate demand-aggregate supply model.Which of the following will be true of an economy in the long run that is at point M in the short run? Figure 10.4 A)The actual price level will be lower than the expected price level. B)The actual output will fall short of the potential output. C)The short-run aggregate supply curve will remain stable at SRAS₁₀₀. D)The short-run aggregate supply curve will shift to SRAS₁₀₉. E)Real GDP will be equal to nominal GDP.

The Figure Below Shows Equilibrium in an Aggregate Demand-Aggregate Supply