Which of the Following Is Occurring as the Macro Economy

question 107

Multiple Choice

Which of the following is occurring as the macro economy is adjusting from the short run to the long run?

• A)Wages and other factor prices are adjusting to close output gaps.
• B)Potential output is adjusting to close inflationary or recessionary gaps.
• C)Wages and other factor prices remain constant.
• D)Aggregate demand shocks are causing deviations from potential output.
• E)Aggregate supply shocks are causing deviations from potential output.

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Definitions:

Serous Membrane

A thin layer of tissue that lines certain internal cavities of the body, producing a serous fluid to lubricate these cavities.

Mucous Membrane

A layer of cells known for producing mucus, found lining various cavities in the body that are exposed to the external environment.

Internal Organs

Organs located inside the body, such as the heart, lungs, and liver, which perform various vital functions.

Increased Permeability

A condition where a material or membrane allows more substances to pass through it, which can be significant in biological and chemical contexts.