Please highlight which of the choices is the right one, I believe it is d but would like some conformation. If you can please also explian why the other choices are wrong
Please highlight which of the choices is the right one, I believe it is d but would like some conformation. If you can please also explian why the other choices are wrong
Chapter14: Aggregate Demand And Supply
Section14.A: The Self Correcting Aggregate Demand And Supply Model
Problem 19SQ
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Please highlight which of the choices is the right one, I believe it is d but would like some conformation. If you can please also explian why the other choices are wrong
![Starting from a long run equilibrium, without any policy intervention, the long run impact of a
temporary adverse supply shock is that prices will
return to the old level and output will be permanently lower.
be permanently higher and output will be permanently lower.
be permanently higher and output will be restored to its long run level.
return to the old level and output will be restored to its long run level.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F72d27c1b-d716-4525-9732-37dadc26e228%2F7ec6b19a-da95-4bf0-bb34-956f4c1b16af%2Fsbjo56ga_processed.png&w=3840&q=75)
Transcribed Image Text:Starting from a long run equilibrium, without any policy intervention, the long run impact of a
temporary adverse supply shock is that prices will
return to the old level and output will be permanently lower.
be permanently higher and output will be permanently lower.
be permanently higher and output will be restored to its long run level.
return to the old level and output will be restored to its long run level.
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