Multiple Choice
The figure below shows equilibrium in an aggregate demand-aggregate supply model.Which of the following will be true of an economy in the long run that is at point M in the short run?
Figure 10.4
A) The actual price level will be lower than the expected price level.
B) The actual output will fall short of the potential output.
C) The short-run aggregate supply curve will remain stable at SRAS100.
D) The short-run aggregate supply curve will shift to SRAS109.
E) Real GDP will be equal to nominal GDP.
Correct Answer:

Verified
Correct Answer:
Verified
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