Business, 05.12.2019 01:31 jerlin1103
Consider the economy of simonia, which is initially operating at its long‑run equilibrium. move point a to label the initial equilibrium point.
now suppose that the citizens of simonia become pessimistic about the future of their economy, causing a decline in aggregate demand. shift the appropriate curve or curves to illustrate a decline in aggregate demand. then move point b to label the new equilibrium point in the economy.
as a result of the decrease in aggregate demand, the economy of simonia experiences
a. deflation and high unemployment.
b. inflation and low unemployment.
c. inflation and high unemployment.
d. deflation and low unemployment.
Answers: 3
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Consider the economy of simonia, which is initially operating at its long‑run equilibrium. move poin...
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