Consider an AD/AS Model in Long-Run Equilibrium

question 64

Multiple Choice

Consider an AD/AS model in long-run equilibrium.An output gap,caused by a leftward shift of the AD curve,will be eliminated if

• A)wages rise quickly.
• B)the AS curve shifts upward.
• C)wages and other factor prices fall sufficiently.
• D)real national income decreases.
• E)prices rise quickly.

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Definitions:

Exocrine Tissue

Tissue that secretes substances through ducts onto an epithelial surface, unlike endocrine tissue which releases directly into the bloodstream.

Hepatopancreatic Ampulla

An anatomical structure where the pancreatic duct and bile duct combine before emptying into the duodenum, involved in the digestion process.

Duodenal Ampulla

A dilation in the duodenum where the pancreatic duct and bile duct empty their contents for digestion.

Anal Canal

Terminal portion of the digestive tract.