QUESTION 21 Suppose ‘-0 60.4-0.20, ,0.20 a-0.10, and “0 20. For any given Rr equ

Question

QUESTION 21 Suppose ‘-0 60.4-0.20, ,0.20 a-0.10, and “0 20. For any given Rr equals _ and the economy _ _ a.-0.10; has experienced a negative aggregate demand shock b. 1.00; is in its long-run equilibrium C 0; is in its long-run equilibrium o d.0.90; has experienced a positive aggregate demand shock e. 0.30; has experienced a positive aggregate demand shock QUESTION 22 Suppose a. =0.75, ai = 0.1 5ag = 0.20,-0. 10, and aim = 0.20, For any given Rr-equals o a.-0.15; has experienced a negative aggregate demand shock b. 0.05; has experienced a positive aggregate demand shock 0 c. 1.05; has experienced a positive aggregate demand shock d0.45; has experienced a positive aggregate demand shock e.0; is in its long-run equilibrium

Explanation / Answer

1. e.....0.30 has experienced a positive aggregate demand shock

2. a.........-0.15, has experienced a negative aggregate demand shock

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