Suppose $\bar { a } _ { c } = 0.75$

question 118

Multiple Choice

Suppose $\bar { a } _ { c } = 0.75$ , $\bar { a } _ { i } = 0.15$ , $\bar { a } _ { g } = 0.20$ , $\bar { a } _ { ex} = 0.10$ , and $\bar { a } _ { i m } = 0.20$ ) For any given $R _ { t } , \bar { a }$ Equals ________ and the economy ________.

• A) 0; is in its long-run equilibrium
• B) 0.05; has experienced a positive aggregate demand shock
• C) 1.05; has experienced a positive aggregate demand shock
• D) 0.45; has experienced a positive aggregate demand shock
• E) -0.15; has experienced a negative aggregate demand shock

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Definitions:

Simplify

The process of reducing a mathematical expression or problem to its most basic form.

Collect Like Terms

The process of simplifying algebraic expressions by combining terms that have the same variables raised to the same power.

Operation Indicated

The specific mathematical operation suggested or required by a problem or equation.

Simplify

To reduce something to its simplest form or most basic elements.