11.5 the Long-Run AS Curve

question 87

Multiple Choice

11.5 The Long-Run AS Curve
Refer to the information provided in Figure 11.7 below to answer the questions that follow. Figure 11.7
-Refer to Figure 11.7. Which of the following statements characterizes an output level of $400 billion?

• A) It is sustainable over the long run without unemployment or deflation.
• B) It is achievable only in the long run.
• C) It is attainable in the short run but it is associated with decreases in the price level.
• D) It can be achieved only if investment is independent of the interest rate.

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