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with an explanation and how to visualise these type of qs, pls ans the follow 15 If GDP is the potential output level, you will

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with an explanation and how to visualise these type of qs, pls ans the follow

image text in transcribedimage text in transcribed
15 If GDP is the potential output level, you will expect that the output will fall and the price level will as the economy self-corrects to its long run equilibrium. > A: above; rise X B: above; fall X C: below; rise X D: below; fall X E: at; remain unchanged16 Assume that an economy is initially at its potential output level and there is a fall in oil prices. As the economy self-corrects from the short run to the long run equilibrium, the price level would _; and output level would > A: rise; fall X B: rise; rise X C: fall; fall XD: fall; rise X E: fall; remain unchanged

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