After a Positive Demand Shock,what Are the Expected Long-Run Adjustments

question 14

Multiple Choice

After a positive demand shock,what are the expected long-run adjustments?

• A) Wages fall,price level falls,and output falls back to potential.
• B) Wages rise,price level rises,and output falls back to potential.
• C) Wages fall,price level rises,and output rises back to potential.
• D) Wages rise,price level falls,and output falls back to potential.
• E) Wages rise,price level rises,and output rises.

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Definitions:

U.S. Mail

The federal postal service in the United States, responsible for the collection, transportation, and delivery of mail and packages.

Commercial Bribery

The act of offering, giving, receiving, or soliciting something of value to influence the actions of an official or other person in charge of a public or legal duty.

Public Official

A person holding a position of authority or service in a government or public service organization.

Foreign Official

An individual who holds a position of authority in a government or government agency outside of one's own country.