The Figure Below Reflects the Inverse Relationship Between Real GDP

question 118

Multiple Choice

The figure below reflects the inverse relationship between real GDP and the price level. If the economy is initially at point c and aggregate demand is stable, in the long run, the economy will:

• A) move toward point a
• B) move toward point b
• C) stay at point c
• D) move toward point d
• E) move toward point f

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