In the above figure, if aggregate demand does not change the short -run equilibrium will
A. eventually adjust to a long-run equilibrium with a higher price level.
B. will not adjust on its own.
C. eventually adjust to a long-run equilibrium with a lower price level.
D. None of the above answers are correct.
Answer:C
In the above figure, if aggregate demand does not change the short -run equilibrium will
A. eventually adjust to a long-run equilibrium with a higher price level. B. will not adjust on its own. C. eventually adjust to a long-run equilibrium with a lower price level. D. None of the above answers are correct.