The Intersection of an Economy's Aggregate Demand and Long-Run Aggregate

question 279

Multiple Choice

The intersection of an economy's aggregate demand and long-run aggregate supply curves:

• A) determines its equilibrium real GDP in both the long run and the short run.
• B) determines its equilibrium price level in both the long run and the short run.
• C) occurs at the economy's potential output in long-run equilibrium.
• D) occurs at high levels of cyclical unemployment.

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Definitions:

Inductor

A coil.

Voltage Spike

A momentary increase of voltage lasting 2 nanoseconds or less.

Magnetic Field

The space in which a magnetic force exists.

Electromagnetic Induction

Voltage produced by lines of magnetic flux cutting a conductor.