Multiple Choice
Starting from long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, a one-period positive supply shock causes output to:
A) remain above the natural level for only one period.
B) remain above the natural level for more than one period.
C) remain below the natural level for only one period.
D) remain below the natural level for more than one period.
Correct Answer:
Verified
Correct Answer:
Verified
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Q12: The dynamic aggregate supply curve shows the
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