If the government chooses not to intervene in the economy, what will happen to the above variables in the long run? Indicate in the space below what will happen in the transition from the short run back to the long run equilibrium and the final values of output and unemployment in the long run. Short-run Output Unemployment Prices Interest rate Real Money Bal What curves will shift when the economy moves from the short run back to the long run equilibrium. Include a graph.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
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If the government chooses not to intervene in
the economy, what will happen to the above
variables in the long run? Indicate in the
space below what will happen in the
transition from the short run back to the long
run equilibrium and the final values of output
and unemployment in the long run.
Short-run
Output
Unemployment
Prices
Interest rate
Real Money Bal
What curves will shift when the economy
moves from the short run back to the long run
equilibrium. Include a graph.
Transcribed Image Text:If the government chooses not to intervene in the economy, what will happen to the above variables in the long run? Indicate in the space below what will happen in the transition from the short run back to the long run equilibrium and the final values of output and unemployment in the long run. Short-run Output Unemployment Prices Interest rate Real Money Bal What curves will shift when the economy moves from the short run back to the long run equilibrium. Include a graph.
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