Start at long-run equilibrium. Then suppose that AD decreases. What will be the short-term result? O falling prices and a recession O rising prices and a recession O falling prices and an expansion O rising prices and an expansion
Start at long-run equilibrium. Then suppose that AD decreases. What will be the short-term result? O falling prices and a recession O rising prices and a recession O falling prices and an expansion O rising prices and an expansion
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 7QR
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![Start at long-run equilibrium. Then suppose that AD decreases. What will be the
short-term result?
O falling prices and a recession
O rising prices and a recession
O falling prices and an expansion
O rising prices and an expansion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F061b38e6-ba9d-45bd-a074-e3ea67de8438%2F1ab06af4-bcdc-4ab6-831d-a325fcc53445%2F140pbcs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Start at long-run equilibrium. Then suppose that AD decreases. What will be the
short-term result?
O falling prices and a recession
O rising prices and a recession
O falling prices and an expansion
O rising prices and an expansion
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