Multiple Choice
A decrease in the aggregate demand curve along the LRAS curve, all other things unchanged, will generate ____ in potential real GDP and ____ in the price level.
A) an increase; no change
B) a decrease; no change
C) no change; an increase
D) no change; a decrease
Correct Answer:

Verified
Correct Answer:
Verified
Q73: Exhibit 14A-3 Macro AD-AS Model <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9287/.jpg" alt="Exhibit
Q75: The long-run aggregate supply curve (LRAS) corresponds
Q76: Exhibit 14A-6 Aggregate demand and supply model <img
Q78: Exhibit 14A-2 Macro AD-AS Model <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9287/.jpg" alt="Exhibit
Q79: In long-run full-employment equilibrium, the CPI equals
Q80: Exhibit 14A-1 Aggregate demand and supply model <img
Q82: Exhibit 14A-2 Macro AD-AS Model <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9287/.jpg" alt="Exhibit
Q92: If an economy is operating at short-run
Q103: An aggregate supply curve with a
Q142: In the long run, a decrease