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-Suppose the Economy Is Initially Operating at Point a in the Above

Question 35

Multiple Choice

-Suppose the economy is initially operating at point A in the above figure. Which of the following statements is true? A) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the long run. B) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the short run. C) An unexpected reduction in aggregate demand will cause the economy to move from point A to point C in the short run. D) none of the above
-Suppose the economy is initially operating at point A in the above figure. Which of the following statements is true?


A) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the long run.
B) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the short run.
C) An unexpected reduction in aggregate demand will cause the economy to move from point A to point C in the short run.
D) none of the above

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