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

question 29

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 .

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

Understand the structure and member countries of major trade agreements like NAFTA and the European Union.

Recognize the arguments for and against large trade agreements such as NAFTA.

Understand how political disruptions can threaten foreign investments and the importance of political risk analysis.

Acknowledge the differences in legal and political systems across countries and their impact on business operations.

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Definitions:

Blood Temperature

The temperature of the blood within an organism, which is an indicator of its thermal state.

Brainstem

The brainstem is the lower extension of the brain where it connects to the spinal cord, responsible for controlling vital functions such as breathing, heart rate, and blood pressure.

Fine Motor Control

The coordination of small muscles, in movements—usually involving the synchronization of hands and fingers—with the eyes.

Basal Ganglia

A group of structures in the brain involved in movement control and coordination.