If the Current Short-Run Equilibrium Level of Output Is Less

question 144

Multiple Choice

If the current short-run equilibrium level of output is less than full-employment output,we can then expect that in the long run

• A) the price level will fall.
• B) the price level will rise.
• C) aggregate demand will decrease.
• D) aggregate demand will increase.
• E) long-run aggregate supply will decrease.

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Definitions:

Paid Admissions

Revenue generated from the sale of tickets or entry fees.

Budgeting

Budgeting involves planning income and expenditure for a specific period, helping organizations allocate resources efficiently.

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid.

Unit Fixed Costs

Unit fixed costs refer to the costs that do not vary with the level of output or activity within a certain range of production or sales.