Business, 27.03.2020 04:31 dedrell16

An economy is currently in a long run equilibrium where SRAS = LRAS = AD. Suppose that there is increased security about jobs and future income, which of the following is the best explanation of the outcome? A. Aggregate demand increases. B. Short-run aggregate supply increases. C. Long-run aggregate supply increases. D. Aggregate demand, short-run and long-run aggregate supply all increase. Given that the economy is currently in a long run equilibrium where SRAS = LRAS = AD there is increased security about jobs and future income the economy would then experience A. a recessionary gap. B. a depressionary gap. C. an inflationary gap. D. stagflation.

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An economy is currently in a long run equilibrium where SRAS = LRAS = AD. Suppose that there is incr...

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