Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then: a-long-run aggregate supply will decrease. b-aggregate demand will decrease. c-aggregate demand will increase. d-long-run aggregate supply will increase.
Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then: a-long-run aggregate supply will decrease. b-aggregate demand will decrease. c-aggregate demand will increase. d-long-run aggregate supply will increase.
Chapter10: Aggregate Demand And Supply
Section10.A: The Self Correcting Aggregate Demand And Supply Model
Problem 10SQ
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Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then:
a-long-run aggregate supply will decrease.
b-aggregate demand will decrease.
c-aggregate demand will increase.
d-long-run aggregate supply will increase.
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