Refer to Figure 12-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be? Figure 12-3 Price level (GDP deflator, 2000100) OA B OC D None of the above LRAS SRAS, SRAS AD₂ AD₁ Real GDP (trillions of 2000 dollars)

Refer to Figure 12-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be? Figure 12-3 Price level (GDP deflator, 2000100) OA B OC D None of the above LRAS SRAS, SRAS AD₂ AD₁ Real GDP (trillions of 2000 dollars)

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

Refer to Figure 12-3. Suppose the economy is at point C. If investment spending decreases in the
economy, where will the eventual long-run equilibrium be?
Figure 12-3
Price level
(GDP deflator,
2000100)
OA
O
O
B
C
D
LRAS
SRAS,
SRAS
*
AD₁
AD₂
0
None of the above
Real GDP
(trillions of 2000 dollars)

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