Suppose the Economy Is Initially in Long-Run Equilibrium

question 129

Multiple Choice

Suppose the economy is initially in long-run equilibrium. Which statement best describes the state of the economy after an increase in aggregate demand?

• A) Prices and output are higher.
• B) Prices and output are lower.
• C) Prices are higher and output is the same.
• D) Prices are the same and output is lower.

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Definitions:

Meninx

Meninx (plural, meninges) refers to one of the three membranes (the dura mater, arachnoid mater, and pia mater) that cover the brain and spinal cord.

Periosteum

The periosteum is a dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints, serving as a site for attachment for muscles and bones.

Nervous System

A complex network of nerves and cells that carry messages to and from the brain and spinal cord to various parts of the body.

Meningitis

An inflammation of the protective membranes covering the brain and spinal cord, a condition that can be caused by infection with viruses, bacteria, or other microorganisms.