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Based on the figure above, suppose the economy is in short-run equilibrium at an output of $2,500 ...

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7 years ago

Based on the figure above, suppose the economy is in short-run equilibrium at an output of $2,500 ...

Based on the figure above, suppose the economy is in short-run equilibrium at an output of $2,500 billion. If activist policies are not used, the economy will
A) return to an output of $2,000 billion when wage contracts expire and the aggregate demand curve shifts to the left.
B) remain at an output of $2,500 billion indefinitely.
C) return to an output of $2,000 billion when wage contracts are renegotiated and the aggregate supply curve shifts left.
D) return to an output of $2,000 billion when the aggregate demand curve automatically shifts back to AD2.

Textbook

Introduction to Economic Reasoning

Edition: 8^th

Author: Rohlf

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Retnec Author

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7 years ago

Smart ... Thanks!

big_larry_samp

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Yesterday

Thanks

SlimyPencil

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2 hours ago

Thanks for your help!!

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