In the case where there is no policy intervention, provide a brief economic explanation of what happens

(a) in the economy as it transitions from the original equilibrium to the short-run equilibrium and

(b) from the short-run equilibrium to the long-run equilibrium.

Answer rating: 100% (QA)

a From the Original Equilibrium to the ShortRun Equilibrium Original Equilibrium At the initial equi... View the full answer