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:

Etic Approach

An approach that emphasizes the universal aspects of human behavior and development.

Emic Approach

An approach that explores how behavior and development take place within specific cultural contexts.

Cultural Contexts

The various social, religious, economic, and cultural settings that influence and shape individuals' behaviors, values, and beliefs.

Emotion Regulation

The process by which individuals influence their emotions, how they experience them, and how and when they are expressed.