Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pleease Help Long-run macroeconomic equilibrium occurs when O structural and frictional unemployment equal zero. O output is below potential GDP. O the aggregate demand curve

Pleease Help

image text in transcribedimage text in transcribedimage text in transcribed
Long-run macroeconomic equilibrium occurs when O structural and frictional unemployment equal zero. O output is below potential GDP. O the aggregate demand curve intersects the short-run aggregate supply curve. O the aggregate demand and short-run aggregate supply curves intersect at a point on the long-run aggregate supply curve. O output is above potential GDP.If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium O aggregate demand will decrease. O GDP will be equal to potential GDP. O GDP will be above potential GDP. aggregate demand will increase. O GDP will be below potential GDP.Suppose the economy is at full employment and the level of imports, holding all else constant, begins to rise. Which of the following will happen in the short run? 0 The aggregate demand curve will shift to the right. 0 Unemployment will decline. 0 Prices will decline. 0 Output will increase

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Reimagining Capitalism In A World On Fire

Authors: Rebecca Henderson

1st Edition

1541730151, 9781541730151

More Books

Students also viewed these Economics questions

Question

18. What are some of the privacy issues that Facebook has created?

Answered: 1 week ago

Question

Describe several uses for a position description.

Answered: 1 week ago