Question: When output exceeds full employment, prices will Part 2 A. rise, and output will fall back to full employment. B. rise, and output will keep

When output exceeds full employment, prices will Part 2 A. rise, and output will fall back to full employment. B. rise, and output will keep rising. C. remain the same, and a new long-run equlibrium will be established. D. fall, and output will keep rising

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!