Multiple Choice
From a long-run equilibrium with p = pe = 0,suppose x rises permanently to 8 and pe never rises from zero.The economy will come to rest
A) on its LP curve with p = 8.
B) at p = 0 and Y = 108.
C) back at p = 0 and Y = 100.
D) on its SP curve at p = 8.
E) on its SP curve at p = 4 and Y = 104.
Correct Answer:
Verified
Correct Answer:
Verified
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