Please highlight the correct answer for each and explain why that choice is correct if you can If a short-run equilibrium occurs at a level of output above the natural rate, then in thetransition to the long run prices will __________, and output will ______decrease; increaseincrease; decreaseincrease; increasedecrease; decrease In the aggregate demand-supply model, a short-run equilibrium occurs at the combination ofoutput and prices whereaggregate demand equals long-run aggregate supplyshort-run aggregate supply equals long-run aggregate supplyaggregate demand equals short-run aggregate supplyaggregate demand equals long-run and short-run aggregate supply

Aggregate demand is the sum of consumption, investment, government spending and net export. The…

If a short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will ________, and output will decrease; increase increase; decrease increase; increase decrease; decrease

If a short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will ________, and output will decrease; increase increase; decrease increase; increase decrease; decrease

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please highlight the correct answer for each and explain why that choice is correct if you can

If a short-run equilibrium occurs at a level of output above the natural rate, then in the
transition to the long run prices will __________, and output will ______
decrease; increase
increase; decrease
increase; increase
decrease; decrease

In the aggregate demand-supply model, a short-run equilibrium occurs at the combination of
output and prices where
aggregate demand equals long-run aggregate supply
short-run aggregate supply equals long-run aggregate supply
aggregate demand equals short-run aggregate supply
aggregate demand equals long-run and short-run aggregate supply

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