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

Question 57

Multiple Choice

Consider the basic AD/AS macro model in long -run equilibrium. A permanent expansionary AD shock has
Price-level effect in the short run and price -level effect in the long run.


A) a positive; no
B) a negative; no
C) a positive; an even larger
D) a positive; a smaller
E) a negative; a positive

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