q1

15. Suppose (TIC = 0.55, (1, = 0.25, 59. = 0.20, flex 2 0.15, (Tim 2 0.20 For any given R,\" 3 equals and the economy a. 0; is in its long-run equilibrium b. 1.05; has experienced a positive aggregate demand shock c. 0.95; has experienced a positive aggregate demand shock d. 0.05; has experienced a negative aggregate demand shock e. -0.05; has experienced a positive aggregate demand shock