Multiple Choice
Consider the basic AD/AS macro model in long- run equilibrium. An expansionary AD shock will the price level and output in the short run. In the long run, the price level will
And output .
A) increase; decrease; increase further; will increase further
B) decrease; decrease; decrease further; will be restored to potential output
C) decrease; decrease; decrease further; will decrease further
D) increase; increase; increase further; will be restored to potential output
E) increase; decrease; increase further; will be restored to potential output
Correct Answer:
Verified
Correct Answer:
Verified
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