The Figure Given Below Shows Short Run and Long Run

question 138

Multiple Choice

The figure given below shows short run and long run equilibrium in an aggregate demand-aggregate supply model. The economy shown in this figure is:

• A) in a long-run equilibrium at the price level P and income level Y.
• B) in a short-run equilibrium at the price level P and income level Y.
• C) experiencing a contractionary gap at price level P and income level Y.
• D) experiencing an expansionary gap at price level P" and income level Y'.
• E) in a short-run equilibrium at the price level P' and income level Y.

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Definitions:

Overturn Precedents

To reverse or invalidate prior judicial decisions, altering the legal interpretations previously established by courts.

Criminal Case

A legal proceeding against an individual or entity charged with committing a crime, involving trials and judgments based on criminal law.

Remedy

The relief given to an innocent party to enforce a right or compensate for the violation of a right.

Primary Sources

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