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25. Dynamic AD/AS Model
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Problem 15
25. Dynamic AD/AS Model
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25. Dynamic AD/AS Model / Dynamic AD-AS Model: Inflation and Recession / Problem 5
Problem 5
What are the implications of a short-run equilibrium not aligning with long-run equilibrium during a recession in the dynamic AD-AS model?
A
Lower price levels and higher GDP.
B
Higher price levels and higher GDP.
C
Stable price levels and GDP.
D
Higher price levels and lower GDP.
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