If the Aggregate Demand (ADI)curve in an Economy Is Y

question 23

Multiple Choice

If the aggregate demand (ADI) curve in an economy is Y = 20,000 - 20,000
,current inflation ( 11ec9ae2_bd79_1ce7_a39a_a9c7bc0c6307_TB34225555_11 ) equals 0.08 (8%) ,and potential output (Y*) equals 19,200,then in the short run,equilibrium output equals ________ and,in the long run,the inflation rate equals ________%.

• A) 19,200;4
• B) 18,800;6
• C) 18,800;4
• D) 18,400;4
• E) 18,400;8

---

Definitions:

Compounded Annually

Interest on an investment that is calculated once a year and added to the principal sum of the investment.

Compounded Monthly

Compounded Monthly means applying interest to both initial principal and the accumulated interest from previous periods on a monthly basis.

Lost Wages

The income an individual is unable to earn due to their inability to work, often resulting from an injury or illness.

Compounded Monthly

A process where interest is calculated and added to the principal sum of a loan or deposit each month.