Suppose the Economy Was Initially in a Long-Run Equilibrium

question 268

Multiple Choice

Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. U.S. aggregate demand ________ and eventually the money wage rate ________.

• A) increases; rises
• B) increases; falls
• C) decreases; rises
• D) decreases; falls

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Definitions:

Sauerkraut

Fermented cabbage, a traditional dish of many countries, known for its sour taste and health benefits related to gut health.

Vaccines

Biological preparations that provide active acquired immunity to a particular infectious disease.

Koch's Postulates

A set of four criteria designed to establish a causative relationship between a microbe and a disease.

Pathogen

An organism, usually a microorganism, capable of producing disease.