Refer to Figure 14.3. Suppose the economy is initially at long-run equilibrium and the economy experiences a demand shock such as a stock market crash
Other things equal, following the effect of the stock market crash, the economy will ultimately end up at a new long-run equilibrium ________ the initial long-run equilibrium. A) that is the same as
B) with a higher real GDP and a higher inflation rate than
C) with a higher real GDP than, and the same inflation rate as
D) with a higher inflation rate than, and the same real GDP as
A
Economics
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The law of diminishing returns states that as more workers are hired, beyond some point,
a. total output will fall b. total cost will fall c. marginal physical product will fall d. total cost will rise e. total output will rise
Economics
Define negative externalize and give an example
Please provide the best answer for the statement.
Economics