If the Economy Is in Long Run Equilibrium at Full

question 46

Multiple Choice

If the economy is in long run equilibrium at full employment, the level of overall economic activity:

• A) is positively affected by changes in the price level.
• B) is only affected by changes in aggregate demand.
• C) is not affected by changes in the price level.
• D) is negatively affected by changes in the price level.

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Definitions:

Yea-Sayers

Individuals who tend to agree with or affirm propositions without significant criticism or skepticism, often to maintain harmony or avoid conflict.

Sensory Information

Data received by the senses (sight, hearing, touch, taste, and smell) that is then processed by the brain.

Brain Organizes

The process by which the brain structures and arranges information and sensory inputs to make sense of the world.

Sensory Nerves

Nerves that transmit sensory information from the body's periphery towards the central nervous system, allowing for the perception of stimuli.