To Achieve Long-Run Equilibrium in an Economy with a Recessionary

question 37

Multiple Choice

To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

• A)increase.
• B)decrease.
• C)not change.
• D)either increase or decrease depending on the relative shifts of AD and AS.

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An interview format where a candidate is questioned by a group of interviewers simultaneously.

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