What Will Happen in the Long Run If There Is

question 36

Multiple Choice

What will happen in the long run if there is an unexpected increase in aggregate demand and the Fed does nothing?

• A)Both output and prices will be higher.
• B)Only the price level will increase; real output will return to its natural level.
• C)A recession will occur and the aggregate demand curve will shift back to its starting position.
• D)The aggregate supply curve will shift rightward; this will return price to its initial level and further increase real output.

---

Definitions:

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, both genders, neither gender, or another gender.

Transvestite

A person who dresses in clothing traditionally associated with the opposite sex; the term is increasingly seen as outdated or offensive, with "cross-dresser" being preferred.

Vaginal Fluid

A natural secretion produced by glands in the vagina, playing a crucial role in its cleaning and lubrication.

Semen

A fluid containing spermatozoa and secretions from the male reproductive glands, involved in the fertilization of female ova.