Use the Following to Answer Questions

question 64

Multiple Choice

Use the following to answer questions .
Exhibit: Long-run Equilibrium
-(Exhibit: Long-run Equilibrium) Changes in aggregate demand from AD₁ to either AD₂ or AD₃

• A) will change nominal GDP but will not change real GDP in the long run.
• B) will change real GDP but will not change nominal GDP in the long run.
• C) will change the potential level of real GDP.
• D) will change the price level and real GDP.

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Definitions:

Motor Skills

Skills that enable the movements and tasks we do on a daily basis, involving the coordination between muscles and the nervous system.

Cognitive Skills

The mental capabilities involved in processing information, understanding concepts, solving problems, and generating decisions.

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The early childhood period, typically from ages three to five, before a child begins compulsory education at primary school.

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The extra body fat that a baby accumulates, which is crucial for energy and development, typically shed during growth.