Consider the Basic AD/AS Macro Model in Long-Run Equilibrium

question 87

Multiple Choice

Consider the basic AD/AS macro model in long-run equilibrium.An expansionary AD shock would have ________ output effect in the short run and ________ output effect in the long run.

• A)a positive; no
• B)a positive; a positive
• C)no; a positive
• D)no; no
• E)not enough information to know

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Definitions:

Working Memory

A cognitive system responsible for temporarily holding information available for processing, important for reasoning and the guidance of decision-making and behavior.

Long-Term Memory

The phase of the memory system that is capable of storing information for long periods of time, potentially indefinitely.

Semantic Memories

Memories of general knowledge, including facts, rules, concepts, and propositions.

Leaky Bucket

A concept often used in telecommunications and computing to describe a method of controlling data flow or managing available bandwidth.