If Actual Output Exceeds Potential Output for a Prolonged Period

question 90

Multiple Choice

If actual output exceeds potential output for a prolonged period of time, we would eventually expect factor prices to:

• A)rise, causing the SAS curve to shift up (to the left).
• B)fall, causing the SAS curve to shift down (to the right).
• C)rise, causing the LAS curve to shift out to the right.
• D)fall, causing the LAS curve to shift in to the left.

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Definitions:

Depressive Disorder

This condition involves a constant feeling of sadness or a disinterest in usual activities, markedly affecting a person's daily routine.

Neurochemical Bases

Refers to the foundational role that neurotransmitters and other chemicals play in the functioning of the nervous system and the brain.

Mood Disorders

A category of mental disorders involving persistent disturbances in mood or emotional state.

Research Effort

The systematic and diligent work undertaken to increase the stock of knowledge, including knowledge of humans, culture, and society, and the use of this stock of knowledge to devise new applications.