Multiple Choice
An economy is characterized by the AD equation P = 300 - 0.02Y,SRAS equation P = 100 and LRAS equation Y* = 5,000.In the absence of any change in policy or exogenous shocks,this economy will achieve a long-run price level of
A) 110.
B) 200.
C) 120.
D) 105.
E) 90.
Correct Answer:
Verified
Correct Answer:
Verified
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