Multiple Choice
Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.
-Refer to Figure 33-7.Suppose the economy starts at Y.If there is a fall in aggregate demand,then the economy moves to
A) V in the long run.
B) W in the long run.
C) X in the long run.
D) Z in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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