If the Economy Is in Long Run Equilibrium and Then

question 122

Multiple Choice

If the economy is in long run equilibrium and then aggregate demand increases, in the long run the increase in aggregate demand means that the

• A) neither the price level nor real GDP will be unaffected.
• B) the price level will be higher and real GDP will be larger.
• C) price level will be higher but real GDP will be unaffected.
• D) real GDP will be larger but the price level will be unaffected.

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Definitions:

Vaccination

The administration of antigenic material to stimulate an individual's immune system to develop adaptive immunity to a pathogen.

Endospores

Highly resistant, dormant structures formed within certain bacteria, allowing survival in adverse conditions until favorable conditions return.

Unfavorable

Unfavorable refers to conditions or circumstances that are detrimental, adverse, or not beneficial.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water.