Consider an AD/AS Model in Long- Run Equilibrium

question 22

Multiple Choice

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

• A)wages and other factor prices fell quickly.
• B)the AS curve shifted upward.
• C)real national income decreased.
• D)wages rose quickly.
• E)prices rose quickly.

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Definitions:

Intrusive Thoughts

Unwanted and often distressing thoughts or images that suddenly appear in mind, a common feature in various forms of anxiety and OCD.

Rebound Anxiety

An increase in anxiety symptoms that can occur after discontinuing a medication that was suppressing anxiety.

Benzodiazepines

A class of psychoactive drugs used primarily for treating anxiety, but also used as sedatives, muscle relaxants, and to prevent seizures.

Chronic Muscle Tension

A physical condition marked by persistent tightness in the muscles that can result from stress, overuse, or underlying health issues.