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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
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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 increaseStep by Step Solution
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