If an Economy Was Initially in Long-Run Equilibrium,an Unanticipated Increase

question 182

Multiple Choice

If an economy was initially in long-run equilibrium,an unanticipated increase in aggregate demand will tend to cause

• A)an increase in unemployment.
• B)a decrease in the price of resources.
• C)a reduction in real output that will spiral downward into a prolonged recession.
• D)a temporarily high level of output and employment that cannot be maintained.

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Definitions:

Observational Research

A research method involving the systematic recording of observable phenomena or behaviors in their natural settings without manipulation.

Statistical Forecasting

The process of using statistical methods to predict future events or trends based on historical data.

Malicious Compliance

The act of intentionally following orders or instructions in a way that is known to cause harm or failure, using adherence to the directives as a form of passive aggression.

Organizational Change

The process by which companies or organizations change their structure, strategies, operational methods, technologies, or organizational culture to affect change within the organization or to respond to external influences.