Assume the Economy Is Currently in Long-Run Equilibrium at Its

question 79

Multiple Choice

Assume the economy is currently in long-run equilibrium at its potential output and that it is subjected to a positive demand shock.When the economy moves back to producing its potential level of national income,the price level will be

• A)equal to what it was originally before the demand shock.
• B)lower than it was in short-run equilibrium and the lower than it was originally.
• C)lower than it was in the short-run equilibrium but higher than it was originally.
• D)higher than it was in the short-run equilibrium but lower than it was originally.
• E)higher than it was in the short-run equilibrium and even higher than it was originally.

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Hormones like cortisol that are released into the body in response to stress, affecting various bodily functions including metabolism and immune response.

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