Multiple Choice
An economy is initially in long-run equilibrium with the vertical LRAS Y* = 5,000,horizontal SRAS P = 100,and the AD equation P = 200 - 0.02Y.Then the AD shifts rightward to P = 220 - 0.02Y.The new long-run equilibrium price level will be
A) 120.
B) 110.
C) 100.
D) 130.
E) 115.
Correct Answer:
Verified
Correct Answer:
Verified
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