The Country of Mu Has Continuous Strong Economic Growth and a Steady

question 36

Multiple Choice

The country of Mu has continuous strong economic growth and a steady price level. This situation is most likely the result of aggregate demand growing ____________aggregate supply.

• A) at the same pace as long-run
• B) slower than long-run
• C) faster than long-run
• D) slower than short-run

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.

Complements

Items or services that are consumed in tandem, where using or consuming one enhances the desirability or utility of the other.

Gas Stations

Facilities that sell fuel and often other goods and services for motor vehicles.

Automobiles

Motor vehicles with four wheels designed to transport people; cars are the most common form of these.