If the Economy Is in Macroeconomic Equilibrium with a Vertical

question 40

Multiple Choice

If the economy is in macroeconomic equilibrium with a vertical AS curve,and then aggregate demand increases,we expect the AE function to shift to a

• A)higher level and stay there.
• B)higher level,but then shift part of the way down to its original position as the price level rises.
• C)higher level but then return to its original position as the price level rises.
• D)lower level and stay there.
• E)lower level,but then return to its original position as the price level rises.

---

Definitions:

Economic Strong

Refers to situations or entities that possess robust financial health, stability, or growth.

Two-Person Single Career

A situation where one partner's career is prioritized, and the other partner contributes support to ensure the success of that career, often sacrificing their own career advancement.

Dual-Career Couple

A partnership where both individuals have careers and work outside the home, often facing challenges balancing work and family life.

Displaced Homeless

Individuals who become homeless due to being displaced from their residence by factors like natural disasters, conflict, or development-induced eviction.