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Question 9 2 pts A decrease in potential output in the AD-AS supply model will in the long run lead to what? O A decrease

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Question 9 2 pts A decrease in potential output in the AD-AS supply model will in the long run lead to what? O A decrease in output and a decrease in inflation relative to the initial equilibrium O No change in output and a decrease in inflation relative to the initial equilibrium O A decrease in output and a decrease in inflation relative to the initial equilibrium O A decrease in output and no change in inflation relative to the initial equilibriumQuestion 10 2 pts Consider an AD-AS model with AD curve Y Y* = a:y(7r if\") + ED and AS curve 7: = 7:3 + (Y Y*) + 65 with parametervalues a = 0.5, y = 1, (b = land ,6 = 0.5 and with ination target 7r* = 0.02 and potential output normalised to Y* = 1. Starting from a long-run equilibrium with 71:9 = 71"\

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