Question: In Exhibit A-8, the self-correcting AD/AS model predicts that the long-run result of the decrease from AD1 to AD2 will be a (an) a. higher

In Exhibit A-8, the self-correcting AD/AS model predicts that the long-run result of the decrease from AD1 to AD2 will be a (an)

a. higher price level and higher unemployment rate.

b. lower price level and higher unemployment rate.

c. unchanged price level and full employment.

d. lower price level and full employment.

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