An Economy Is Operating at Long-Run Equilibrium

question 215

Multiple Choice

An economy is operating at long-run equilibrium. What is the most likely result of an aggressive expansionary fiscal policy?

• A) no change in long-run GDP and employment
• B) a decrease in the unemployment rate
• C) a decrease in prices
• D) a rise in long-run employment

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Definitions:

Collecting Duct

Part of the renal tubule system in the kidney that is responsible for the concentration and transport of urine.

Filtrate

The fluid that has passed through a filter, removing certain particles and solutes, commonly used in the context of biological processes like kidney filtration.

Reabsorption

The process by which substances are taken back into the bloodstream from the filtrate produced by the kidneys or other filtering mechanisms.

Podocytes

Specialized cells in the kidney that wrap around capillaries of the glomerulus, playing a key role in the filtration of blood to form urine.