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Consider the Basic AD/AS Macro Model in Long-Run Equilibrium

Question 87

Multiple Choice

Consider the basic AD/AS macro model in long-run equilibrium.An expansionary AD shock would have ________ output effect in the short run and ________ output effect in the long run.


A) a positive; no
B) a positive; a positive
C) no; a positive
D) no; no
E) not enough information to know

Correct Answer:

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