The proponents of the hysteresis hypothesis argue that: (i) the short-run and the long-run developments of the economy can be studied separately. (ii) the fluctuations in aggregate demand affect output and employment only in the short run. (iii) negative shocks to aggregate demand can reduce the natural level of output and employment. a. O b. Only (i) and (iii) Only (iii) Only (i) and (ii) O c. O d. Only (ii)

The proponents of the hysteresis hypothesis argue that: (i) the short-run and the long-run developments of the economy can be studied separately. (ii) the fluctuations in aggregate demand affect output and employment only in the short run. (iii) negative shocks to aggregate demand can reduce the natural level of output and employment. a. O b. Only (i) and (iii) Only (iii) Only (i) and (ii) O c. O d. Only (ii)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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