Suppose the economy is initially is long run equilibrium... — Answer & Explanation | PrepBeePakistan

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HomeMCQsEconomics

MEDIUMENGLISHEconomics

Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?

Correct answer: A

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