In an inflationary expenditure gap, the equilibrium level of real GDP is:

What environmental problem gets worse as income rises according to your text?

What will be an ideal response?

If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:

A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.