Multiple Choice
The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-4
-Refer to Figure 24-4.Following the positive AS shock shown in the diagram,the adjustment process will take the economy to a long-run equilibrium where the price level is ________ and real GDP is ________.
A) 60; 1000
B) 60; 1300
C) 90; 750
D) 90; 1200
E) 110; 1000
Correct Answer:

Verified
Correct Answer:
Verified
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