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

question 145

Multiple Choice

Consider the basic AD/AS macro model in long-run equilibrium.A permanent expansionary AD shock has ________ price-level effect in the short run and ________ price-level effect in the long run.

• A)a positive; no
• B)a negative; no
• C)a positive; an even larger
• D)a positive; a smaller
• E)a negative; a positive

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Definitions:

More Formalized

Pertains to structures or procedures being more rigorously and precisely specified or organized.

Mechanistic

describes organizations or systems that are highly structured, with clear hierarchical levels, rules, and roles, emphasizing efficiency and predictability in operations.

Organic Structure

A flexible, decentralized organizational design that emphasizes informal networks of communication and empowers employees to take decisions.

Growth

The process of increasing in size, value, or importance.