Please highlight the correct answer for each and explain why that choice is correct if you can If a short-run equilibrium occurs at a level of output above the natural rate, then in thetransition to the long run prices will __________, and output will ______decrease; increaseincrease; decreaseincrease; increasedecrease; decrease In the aggregate demand-supply model, a short-run equilibrium occurs at the combination ofoutput and prices whereaggregate demand equals long-run aggregate supplyshort-run aggregate supply equals long-run aggregate supplyaggregate demand equals short-run aggregate supplyaggregate demand equals long-run and short-run aggregate supply

If a short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will ________, and output will decrease; increase increase; decrease increase; increase decrease; decrease

If a short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will ________, and output will decrease; increase increase; decrease increase; increase decrease; decrease

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Aggregate Demand And Supply

Section14.A: The Self Correcting Aggregate Demand And Supply Model

Problem 2SQP

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Question

Please highlight the correct answer for each and explain why that choice is correct if you can

If a short-run equilibrium occurs at a level of output above the natural rate, then in the
transition to the long run prices will __________, and output will ______
decrease; increase
increase; decrease
increase; increase
decrease; decrease

In the aggregate demand-supply model, a short-run equilibrium occurs at the combination of
output and prices where
aggregate demand equals long-run aggregate supply
short-run aggregate supply equals long-run aggregate supply
aggregate demand equals short-run aggregate supply
aggregate demand equals long-run and short-run aggregate supply

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