If the Economy Is in Long Run Equilibrium and Aggregate

question 322

Multiple Choice

If the economy is in long run equilibrium and aggregate demand increases, then in the short run

• A) the price level rises and real GDP increases.
• B) the price level rises and real GDP does not change.
• C) real GDP increases and the price level does not change.
• D) nothing happens because the economy is in long run equilibrium.

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Definitions:

Customer Advocacy

The act of supporting or recommending a company's products or services by its customers, often influenced by positive experiences.

Customer Service

All of the activities a firm engages in to satisfy the needs and wants of its customers.

Trial Close

A sales technique where the salesperson asks the prospect a question or series of questions to gauge the prospect's readiness to buy.

Buyer's Readiness

The stages a potential customer goes through before deciding to purchase a product, including awareness, knowledge, liking, preference, conviction, and purchase.