Multiple Choice
If the short-run IS-LM equilibrium occurs at a level of income below the natural level of output, then in the long run the price level will ______, shifting the ______ curve to the right and returning output to the natural level.
A) increase; IS
B) decrease; IS
C) increase; LM
D) decrease; LM
Correct Answer:
Verified
Correct Answer:
Verified
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