To find an economy's long-run equilibrium price level, locate the point where ________ and ________ cross and look to the left.
A. demand; supply
B. aggregate demand; price level
C. aggregate demand; short-run aggregate supply
D. long-run aggregate supply; aggregate demand
Answer: D
Economics
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An increase in price could occur due to a(n)
a. Increase in demand and no change in supply b. Decrease in supply and no change in demand c. An increase in demand and decrease in supply d. All of the above
Economics
If wages and prices are flexible, then a recession is best eliminated when prices
A. And wages both rise. B. Drop and wages rise. C. And wages both fall. D. Rise and wages drop.
Economics