At Long-Run Equilibrium in the Dynamic Model of Aggregate Demand

question 62

Multiple Choice

At long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, the demand and supply shocks ε_t and υ_t equal _____, and current inflation π_t equals _____.

• A)0; 0
• B)0; π_{t - 1}
• C)π_t; 0
• D)ρ

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