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Dynamic AD-AS Model: Inflation and Recession
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Dynamic AD-AS Model: Inflation and Recession
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23. Dynamic AD/AS Model / Dynamic AD-AS Model: Inflation and Recession / Problem 3
Problem 3
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
Stable price levels and GDP.
C
Higher price levels and higher GDP.
D
Higher price levels and lower GDP.
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