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If the Economy Is in Short-Run Equilibrium but Not in Long-Run

Question 65

Multiple Choice

If the economy is in short-run equilibrium but not in long-run equilibrium, what forces cause the economy to return to long-run equilibrium?


A) Input prices change, causing the short-run aggregate supply curve to shift.
B) The long-run aggregate supply curve shifts until long-run equilibrium is restored.
C) The aggregate demand curve shifts, causing price changes that restore long-run equilibrium.
D) None of the above is correct.

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