Suppose the Economy Is Initially in a Long-Run Macroeconomic Equilibrium

question 142

Multiple Choice

Suppose the economy is initially in a long-run macroeconomic equilibrium.A shock then hits the economy and we observe that the unemployment rate decreases and the price level increases.We can conclude that ________ has increased and there is now a(n) ________ gap.

• A)aggregate supply; inflationary
• B)aggregate demand; recessionary
• C)aggregate supply; recessionary
• D)aggregate demand; inflationary

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Definitions:

Dry Skin

A condition characterized by a lack of moisture in the skin, leading to itching and flaking.

Emollient

A substance that softens and moisturizes the skin by forming a protective barrier to prevent moisture loss.

Frequent Bathe

The action of washing oneself or another regularly and often to maintain personal hygiene.

Mouth Care

The routine of cleaning and maintaining the mouth, teeth, and gums to prevent infection, tooth decay, and gum disease.