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:

Democratic Leadership

A leadership style characterized by encouraging open communication and sharing decision-making among team members to guide direction.

Personal Interests

The hobbies, goals, or activities that an individual is passionate about or pursues for personal satisfaction.

Personalized Power

Power used for personal gain, often at the expense of others, contrasting with power used for the benefit of others.

Exchanging Valued

Refers to the process of giving and receiving goods, services, or ideas that hold significance or worth to the involved parties.