Quizzol

QUESTION:

se the exhibit to answer the questions 17–18.

Suppose the economy is operating in a recession such as point B in the graph. If policymakers allow the economy to adjust to the long-run natural level on its own, _______.

a. people will raise their price expectations and aggregate demand will shift left

b. people will raise their price expectations and the short-run aggregate supply will shift left

c. people will reduce their price expectations and aggregate demand will shift right

d. people will reduce their price expectations and the short-run aggregate supply will shift right

ANSWER:

d. people will reduce their price expectations and the short-run aggregate supply will shift right

Posted by Cleveland on September 10, 2024