To Achieve Long-Run Equilibrium in an Economy with a Recessionary

question 37

Multiple Choice

To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

• A)increase.
• B)decrease.
• C)not change.
• D)either increase or decrease depending on the relative shifts of AD and AS.

---

Definitions:

Activity-Based Costing

An accounting method that identifies the activities that a firm performs and then assigns indirect costs to products based on the benefit received from those activities.

Activity-Based Costing

A method of cost accounting that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Product Q1

Designates the first quarter's product or output in a company's fiscal year.

Product Q19S

A designated name or code for a specific product, suggesting a unique item or version offered by a company.