-In the Above Figure, If Aggregate Demand Does Not Change

question 88

Multiple Choice

-In the above figure, if aggregate demand does not change the short -run equilibrium will

• A) will not adjust on its own.
• B) eventually adjust to a long-run equilibrium with a higher price level.
• C) eventually adjust to a long-run equilibrium with a lower price level.
• D) None of the above answers are correct.

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Definitions:

Just Noticeable Difference

The minimum difference in stimulus intensity that a specific sense (like sight, hearing, taste, touch, or smell) can detect.

Optic Nerve

The nerve that transmits sensory information from the eye to the brain.

Occipital Lobe

is the region of the brain located at the back of the head, responsible for processing visual information.

Pupils

The opening in the center of the iris of the eye, which regulates the amount of light that enters the eye.