Question: Suppose a decrease in aggregate demand shifts the economy from equilibrium to P, and Y1. LRAS AS Levelfd. The size of the policy action should

$to P, and Y1. LRAS AS Level\fd. The size of the policy$

action should result in an intersection of AD and AS that is

greater than output Y*. equal to output Y less than output Y*

Suppose a decrease in aggregate demand shifts the economy from equilibrium to P, and Y1. LRAS AS Level\fd. The size of the policy action should result in an intersection of AD and AS that is greater than output Y*. equal to output Y less than output Y*

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