Solved

-Refer to Exhibit 9-4

Question 44

Multiple Choice

-Refer to Exhibit 9-4.Assume the economy is self-regulating and currently is in long-run equilibrium with the price level equal to P<sub>5</sub>.If something happens that shifts the AD curve to the AD<sub>1</sub> position,the economy will eventually settle down at a long-run equilibrium point of __________. A) P<sub>5</sub>,Q<sub>3</sub>. B) P<sub>4</sub>,Q<sub>4</sub>. C) P<sub>3</sub>,Q<sub>3</sub>. D) P<sub>3</sub>,Q<sub>5</sub>. E) P<sub>4</sub>,Q<sub>2</sub>.
-Refer to Exhibit 9-4.Assume the economy is self-regulating and currently is in long-run equilibrium with the price level equal to P5.If something happens that shifts the AD curve to the AD1 position,the economy will eventually settle down at a long-run equilibrium point of __________.


A) P5,Q3.
B) P4,Q4.
C) P3,Q3.
D) P3,Q5.
E) P4,Q2.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q39: When the economy is producing the level

Q40: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6439/.jpg" alt=" -Refer to Exhibit

Q41: In the long run,changes in aggregate demand

Q42: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6439/.jpg" alt=" -Refer to Exhibit

Q43: A necessary condition for a money economy

Q45: Suppose the economy is self-regulating and the

Q46: The structural unemployment rate is 1.5 percent,the

Q47: Say's law states that<br>A) demand creates its

Q48: If the economy is producing Natural Real

Q49: If the economy is self-regulating and in