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EastWind [94]
3 years ago
8

If the short-run macroeconomic equilibrium is _________ of the economy's potential output, then there is a(n) ________ and the a

ggregate price level is expected to ________.
Business
1 answer:
Ulleksa [173]3 years ago
8 0

Answer:

B. To the left; recessionary gap; fall

Explanation:

Short-Run Macroeconomic equilibrium occurs when the real GDP demand is equal to the real GDP supply. When there is a shift to the left it means GDP demand decreases below supply leading to an excess in supply of goods and services. When this happens, there's a fall in the level of employment and other indicators of recession. This will also invariably lead to a Fall in the aggregate level of price in order to attract more demand.

The opposite scenario occurs when there is a shift to the right or increase in demand.

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