PRICE LEVEL OOO W LRAS x Y N AD. QUANTITY OF OUTPUT AD₁ AD₂ SRAS Refer to Figure 33-5. Suppose the economy starts at Y. If there is a reduction in aggregate demand, then the economy ma a. W in the long run. b. Z in the long run. c.X in the long run. d. V in the long run.

PRICE LEVEL OOO W LRAS x Y N AD. QUANTITY OF OUTPUT AD₁ AD₂ SRAS Refer to Figure 33-5. Suppose the economy starts at Y. If there is a reduction in aggregate demand, then the economy ma a. W in the long run. b. Z in the long run. c.X in the long run. d. V in the long run.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter17: The Trade-off Between Inflation And Unemploy

Section: Chapter Questions

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Question

PRICE LEVEL
W
LRAS
Y
N
AD.
QUANTITY OF OUTPUT
AD₂
AD₂
SRAS
Refer to Figure 33-5. Suppose the economy starts at Y. If there is a reduction in aggregate demand, then the economy moves to
a. W in the long run.
O b. Z in the long run.
OC.X in the long run.
O d. V in the long run.
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