c) an increase in aggregate demand and an increase in long-run aggregate supply

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 11E
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Use the following graph to answer the next four questions.
e
If point A occurs chronologically before point B, which situation would be shown?
O a) a decrease in aggregate demand and an increase in long-run aggregate supply
O b) a decrease in aggregate demand and a decrease in long-run aggregate supply
Oc) an increase in aggregate demand and an increase in long-run aggregate supply
Od) an increase in aggregate demand and a decrease in long-run aggregate supply
e) a decrease in aggregate demand and a decrease in short-run aggregate supply
Transcribed Image Text:Use the following graph to answer the next four questions. e If point A occurs chronologically before point B, which situation would be shown? O a) a decrease in aggregate demand and an increase in long-run aggregate supply O b) a decrease in aggregate demand and a decrease in long-run aggregate supply Oc) an increase in aggregate demand and an increase in long-run aggregate supply Od) an increase in aggregate demand and a decrease in long-run aggregate supply e) a decrease in aggregate demand and a decrease in short-run aggregate supply
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