If the Long-Run Equilibrium of an Economy Is Disrupted by an Unanticipated

question 125

Multiple Choice

If the long-run equilibrium of an economy is disrupted by an unanticipated increase in aggregate demand (such as might result from unexpectedly strong demand for exports due to the rapid growth of incomes abroad) ,

• A) the price of resources will decrease.
• B) the natural rate of unemployment will decrease.
• C) actual unemployment will temporarily fall below the natural rate.
• D) prices will decrease.

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Definitions:

Sociohistorical Context

The combination of social, cultural, and historical factors that influence and shape events or phenomena at a given time.

Fundamental Disputes

Essential disagreements or debates over basic principles within a field of study or an area of professional practice.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Functionalism

A theory in sociology and anthropology that interprets and describes society as a structure with interrelated parts designed to meet the biological and social needs of the individuals in that society.