The IA Line Does Not Shift in the Short Run

question 68

Multiple Choice

The IA line does not shift in the short run because

• A)real and potential GDP are not equal.
• B)potential GDP does not change.
• C)of expectations and staggered wage and price adjustment.
• D)real GDP does not change.
• E)there is no spending balance.

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Definitions:

Misdemeanor

A criminal offense considered less serious than a felony, typically punishable by fines, community service, or short-term imprisonment.

Practicing Prostitution

The act of engaging in sexual activities in exchange for money or other forms of compensation.

Convicted

A legal status indicating that a person has been found guilty of a crime by a court or jury.

Actus Reus

Guilty act. The commission of a prohibited act is one of the two essential elements required for criminal liability, the other element is the intent to commit a crime.