An Economy Is Operating at Long-Run Equilibrium

question 1

Multiple Choice

An economy is operating at long-run equilibrium. What is the MOST likely result of an aggressive expansionary fiscal policy?

• A) no change in long-run GDP and employment
• B) a decrease in the unemployment rate
• C) a decrease in prices
• D) a rise in long-run employment

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Definitions:

Ejaculation

The release of semen from the male reproductive system during sexual arousal.

Smooth Muscle

A type of muscle found in the walls of hollow organs, such as blood vessels and the digestive tract, that contracts involuntarily.

Urethra

The duct through which urine is discharged from the bladder to the outside of the body in both males and females and through which semen is discharged in males.

Skeletal Muscle

A type of muscle tissue that is attached to bones and is responsible for voluntary movements of the body.