-The Table Above Gives the Aggregate Demand and Aggregate Supply

question 92

Multiple Choice

-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. Lotus Land is in short-run macroeconomic equilibrium. In the long run, if aggregate demand does not change, then Lotus Land will return to full employment as

• A) the money wage rate rises.
• B) the money wage rate falls.
• C) businesses cut their imports.
• D) the government cuts taxes.

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