If the Economy Is in Macroeconomic Equilibrium with a Vertical

question 40

Multiple Choice

If the economy is in macroeconomic equilibrium with a vertical AS curve,and then aggregate demand increases,we expect the AE function to shift to a

• A)higher level and stay there.
• B)higher level,but then shift part of the way down to its original position as the price level rises.
• C)higher level but then return to its original position as the price level rises.
• D)lower level and stay there.
• E)lower level,but then return to its original position as the price level rises.

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Definitions:

Micro

relates to something that is extremely small in scale or scope, often used in contexts like microeconomics, which deals with individual and business decisions.

Macro

Refers to a large-scale perspective in various disciplines, focusing on the structure and behavior of systems as a whole rather than individual components.

Global Levels

Pertains to the scope or scale of processes, phenomena, or measurements that extend across the entire world, impacting or involving multiple countries and populations.

First Woman Sociologist

Harriet Martineau, often regarded as the first female sociologist, who made significant contributions to the field with her writings and translations of Comte's work.