If the Economy Is Initially in Long-Run Equilibrium, Which Statement

question 122

Multiple Choice

If the economy is initially in long-run equilibrium, which statement best describes the effects of a shift in aggregate demand?

• A) Prices and output are affected in both the short and long run.
• B) Prices and output are affected only in the short run.
• C) Prices are affected in the long and short run, but output only in the short run.
• D) Prices are affected in the long and short run, but output only in the long run.

---

Definitions:

Sequence of Questionnaires

An ordered series of surveys or questionnaires presented to respondents, usually to track changes over time or gather data at different stages.

Forecast

A prediction or estimate of future trends or values, often based on historical data analysis.

Sales Details

Specific information related to transactions, products, or services sold, including quantities, prices, and dates.

Value of K

In statistical significance testing, it often represents a critical value that delineates the threshold of rejecting or failing to reject a null hypothesis.