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Exhibit 9-4 -Refer to Exhibit 9-4.Assume the Economy Is Currently in Long-Run

Question 90

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Exhibit 9-4
Exhibit 9-4 -Refer to Exhibit 9-4.Assume the economy is currently in long-run equilibrium with the price level equal to P<sub>3</sub>.If foreigners begin to buy more U.S.goods,the economy will,in the short run,move to which of the following equilibrium combinations of price level and Real GDP? A) P<sub>2</sub>, Q<sub>4</sub>. B) P<sub>3</sub>, Q<sub>3</sub>. C) P<sub>4</sub>, Q<sub>2</sub>. D) P<sub>4</sub>, Q<sub>4</sub>. E) P<sub>5</sub>, Q<sub>3</sub>.
-Refer to Exhibit 9-4.Assume the economy is currently in long-run equilibrium with the price level equal to P3.If foreigners begin to buy more U.S.goods,the economy will,in the short run,move to which of the following equilibrium combinations of price level and Real GDP?


A) P2, Q4.
B) P3, Q3.
C) P4, Q2.
D) P4, Q4.
E) P5, Q3.

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