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:

Psyche

Refers to the human mind or soul, as a fundamental part of individual's mental and emotional state or wellbeing.

Logos

In rhetoric, logos refers to an appeal to logic, where arguments are made using reasoned discourse. In branding, it's the symbolic representation of a company or product.

Mind

The set of cognitive faculties that enables consciousness, perception, thinking, judgement, and memory; the non-physical substance or phenomenon associated with the brain.

Determinism

The philosophical doctrine that all events, including moral choices, are determined completely by previously existing causes.