If Short-Run Equilibrium Output Is Above Full-Employment Output,then in the Long

question 78

Multiple Choice

If short-run equilibrium output is above full-employment output,then in the long run input prices will

• A) decrease and output will increase.
• B) increase and output will be unaffected.
• C) increase and short-run aggregate supply will increase.
• D) increase and output will fall.
• E) decrease and output will fall.

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Definitions:

Retrograde Amnesia

A loss of memory for experiences that occurred shortly before a loss of consciousness.

State-Dependent Memory

The phenomenon where information learned in a particular state of mind is more easily recalled when in that same state.

Repulsed Feeling

An intense feeling of disgust or aversion towards something or someone.

Serial Position Effect

The finding that, for information learned in a sequence, recall is better for the beginning and ending items than for the middle items in the sequence.