Exhibit: Short Run to Long Run Based on the Graph

question 65

Multiple Choice

Exhibit: Short Run to Long Run Based on the graph, if the economy starts from a short-term equilibrium at A, then the long-run equilibrium will be at _____, with a _____ price level.

• A)B; higher
• B)B; lower
• C)C; higher
• D)C; lower

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Definitions:

Pythagorean Theorem

A fundamental principle in geometry that states the square of the hypotenuse in a right-angled triangle is equal to the sum of the squares on the other two sides.

Systematic Random Search

An algorithm for solving problems in which each possible solution is tested according to a particular set of rules.

Linguistic-Relativity Hypothesis

The view that language structures the way we view the world.

Cognitive Limits

Boundaries within which cognitive processes such as memory, attention, and perception operate, affecting the efficiency and capacity of information processing.