Suppose the Economy Is Initially in Long-Run Equilibrium and Aggregate

question 30

Multiple Choice

Suppose the economy is initially in long-run equilibrium and aggregate demand rises. In the long run prices

• A) and output are higher than in the original long-run equilibrium.
• B) and output are lower than in the original long-run equilibrium.
• C) are higher and output is the same as the original long-run equilibrium.
• D) are the same and output is lower than in the original long-run equilibrium.

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Definitions:

Paralysis

The loss of the ability to move one or more muscles, often as a result of damage to the nervous system.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere and involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Learning Disabilities

Neurologically based processing problems that can interfere with learning basic skills and/or executive functioning.

Mental Disorders

Disorders marked by changes in cognition, emotional state, or behavior that cause significant stress and/or hinder normal functioning.