If the Economy Is in Long Run Equilibrium and Then

question 6

Multiple Choice

If the economy is in long run equilibrium and then aggregate demand increases, in the long run the increase in aggregate demand means that the

• A) price level will be higher but real GDP will be unaffected.
• B) real GDP will be larger but the price level will be unaffected.
• C) the price level will be higher and real GDP will be larger.
• D) neither the price level nor real GDP will be unaffected.

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Definitions:

Conscious

Refers to the awareness of one's own existence, sensations, thoughts, surroundings, and abilities.

Preconscious

Pertains to thoughts and feelings that are not currently in conscious awareness but can be easily recalled or accessed.

Unconscious

Parts of the mind that are not within thought's reach and influence behaviors and feelings without conscious awareness.

Moving Away

The act of leaving one's current place of residence or location to live in another place, often for reasons like employment, education, or personal preference.