The figure above shows the aggregate supply (AS), aggregate demand (AD), and potential GDP (YP). Assuming that there are no shocks to the economy, which point represents the long-run equilibrium? Question 3Answer a. Point C b. None of the indicated points c. Point B d. Point A

The figure above shows the aggregate supply (AS), aggregate demand (AD), and potential GDP (YP). Assuming that there are no shocks to the economy, which point represents the long-run equilibrium? Question 3Answer a. Point C b. None of the indicated points c. Point B d. Point A

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Aggregate Demand And Aggregate Supply

Section15.2: Explaining Short-run Economic Fluctuations

Problem 2QQ

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Question

The figure above shows the aggregate supply (AS), aggregate demand (AD), and potential GDP (Y_P).

Assuming that there are no shocks to the economy, which point represents the long-run equilibrium?

Question 3Answer

Point C

None of the indicated points

Point B

Point A

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