-The Table Above Gives the Aggregate Demand and Aggregate Supply

question 92

Multiple Choice

-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. Lotus Land is in short-run macroeconomic equilibrium. In the long run, if aggregate demand does not change, then Lotus Land will return to full employment as

• A) the money wage rate rises.
• B) the money wage rate falls.
• C) businesses cut their imports.
• D) the government cuts taxes.

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Definitions:

Per Capita GDPs

The average economic output per person, calculated by dividing the Gross Domestic Product of a country by its total population.

Less Developed Countries

Nations with low levels of economic resources, industrialization, and Human Development Index ratings compared to other countries.

Economic Development

The progress in economic and social well-being including higher income, improved standards of living, and reduction of poverty.

Military Spending

Government expenditure on the military and defense sector, including salaries, hardware, operations, and maintenance.