If the Long-Run Equilibrium of an Economy Is Disrupted by an Unanticipated

question 125

Multiple Choice

If the long-run equilibrium of an economy is disrupted by an unanticipated increase in aggregate demand (such as might result from unexpectedly strong demand for exports due to the rapid growth of incomes abroad) ,

• A) the price of resources will decrease.
• B) the natural rate of unemployment will decrease.
• C) actual unemployment will temporarily fall below the natural rate.
• D) prices will decrease.

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Definitions:

Criticisms

Evaluations or judgments expressed about something, pointing out its faults or shortcomings often with the intention of promoting improvement.

Continuity Theory

A psychological theory suggesting that individuals tend to maintain the same activities, behaviors, personalities, and relationships as they age.

Connected

Being joined or linked in some manner, either physically, emotionally, or digitally, implying a state of unity or association.

Past

The past refers to the period of time that has already occurred, in contrast to the present and the future.