1.If the economy is in long run economic equilibrium, at potential GDP, and full employment has been...
Fantastic news! We've Found the answer you've been seeking!
Question:
1.If the economy is in long run economic equilibrium, at potential GDP, and full employment has been reached as well, if there is an outward shift in aggregate demand, we can expect damaging inflation to start to occur and the government to seek contractionary fiscal and monetary options.
Posted Date: