Suppose , , , , and ) For any given Equals ________ and the economy ________.
A) 0; is in its long-run equilibrium
B) 1.05; has experienced a positive aggregate demand shock
C) 0.45; has experienced a positive aggregate demand shock
D) -0.15; has experienced a negative aggregate demand shock
E) 0.05; has experienced a positive aggregate demand shock
Correct Answer:
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