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

question 28

Multiple Choice

Consider the basic AD/AS macro model in long -run equilibrium. An expansionary AD shock would have
Output effect in the short run and output effect in the long run.


Definitions:

Fish

Aquatic animals that are typically covered with scales and have gills, commonly harvested as food or kept as pets.

Straight Line

The shortest distance between any two points, or a line with a constant slope, in geometric terms.

Opportunity Costs

Opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Natural Disaster

A sudden and extreme event caused by natural processes of the Earth that can result in significant damage and loss.

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