Consider the Basic AD/AS Macro Model in Long-Run Equilibrium

question 44

Multiple Choice

Consider the basic AD/AS macro model in long-run equilibrium.An expansionary AD shock will ________ the price level and ________ output in the short run.In the long run,the price level will ________ and output will ________.

• A)decrease; decrease; decrease further; decrease further
• B)decrease; decrease; decrease further; be restored to potential output
• C)increase; increase; increase further; increase further
• D)increase; decrease; increase further; be restored to potential output
• E)increase; increase; increase further; be restored to potential output

---

Definitions:

Arthritis

A common condition that affects joints, causing pain, stiffness, and inflammation.

Constant Pain

A medical condition where an individual experiences ongoing, persistent pain over a long period of time.

Drug-resistant Super Germs

Describes bacteria and microbes that have evolved the ability to withstand the drugs designed to kill them, making infections harder to treat.

Overprescription

The practice of prescribing medication in greater quantities or more frequently than is clinically necessary, often leading to negative health outcomes.