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

question 39

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.

• A)a positive; a positive
• B)a positive; no
• C)no; a positive
• D)no; no
• E)not enough information to know

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Definitions:

Deep Structure

In linguistics, the underlying syntactic structure or meaning of a sentence, as opposed to the surface structure which is how it is expressed.

Surface Structures

The outward appearance or organization of something, especially in linguistics where it refers to the specific syntax or wording of a sentence.

Transformational Grammar

A theory of grammar that focuses on how sentences can be transformed into other sentences through the application of rules.

Deep Structure

In linguistics, the underlying syntactic structure or meaning of a sentence, as opposed to its surface structure or actual spoken form.