Q21. Suppose the economy starts in its long-run equilibrium. Then, a negative demand shock causes the economy to be out of equilibrium. The government can respond with can cause the price level to be a. contractionary; higher b. expansionary; lower c. contractionary; lower d. expansionary; higher fiscal policy to restore the econor to its long-run equilibrium. This than when the economy automatically corrects itself. mitte la

Q21. Suppose the economy starts in its long-run equilibrium. Then, a negative demand shock causes the economy to be out of equilibrium. The government can respond with can cause the price level to be a. contractionary; higher b. expansionary; lower c. contractionary; lower d. expansionary; higher fiscal policy to restore the econor to its long-run equilibrium. This than when the economy automatically corrects itself. mitte la

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 12E

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