
Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
Edition 20ISBN: 978-0077660772
Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
Edition 20ISBN: 978-0077660772 Exercise 13
An economy is producing at full employment when AD unexpectedly shifts to the left. A new classical economist would assume that as the economy adjusted back to producing at full employment, the price level would _________________.
A) Increase.
B) Decrease.
C) Stay the same.
A) Increase.
B) Decrease.
C) Stay the same.
Explanation
Hence, the correct answer is b. Decrease...
Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
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