At Long-Run Equilibrium in the Dynamic Model of Aggregate Demand $\varepsilon$

question 39

Multiple Choice

At long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, the demand and supply shocks, $\varepsilon$ _t and $\nu$ _t, equal _____ and current inflation, $\pi$ _t, equals _____.

• A) 0; 0
• B) 0; \(\pi\)_{t - 1}
• C) \(\pi\)_t; 0
• D) \(\pi _ { \mathrm { t } } ^ { \mathrm { * } }\) \(\rho\)

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