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I would like a detailed explanation about why the answer is in green and why not other answers? Exhibit: Figure 1? Price level Real GDP

I would like a detailed explanation about why the answer is in green and why not other answers?

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Exhibit: Figure 1? Price level Real GDP per year In this exhibit (Figure 7-7}, suppose the economy ls initially at K. which of the following statements best explains how the economy responds to restore long- run macroeconomic equilibrium? Select one: a. Overtime, the aggregate demand curve will shift to the right until long-run equilibrium is restored at] and the gap is closed. ' - b. Rising unemployment puts pressure on nominal wages to fall. The SRAS curve shifts right to SRMS1 closing the gap at H. J c. In response to rising prices, firms will increase production moving along SRA52 until long-run equilibrium is restored at] and the gap is closed. d. Rising unemployment puts pressure on nominal wages to fall. Firms employ more workers moving along Sims2 until long-run equilibrium is restored at] and the gap is closed

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