Suppose the Economy Is at a Short-Run Equilibrium GDP That

question 94

Multiple Choice

Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?

• A)output will increase
• B)prices will decline
• C)unemployment will decline
• D)aggregate supply will shift to the left

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Definitions:

Prenatal Screening

Medical tests and procedures conducted during pregnancy to assess the health status and development of the fetus, and to detect any potential genetic or chromosomal abnormalities.

Justify Abortion

The act of providing reasons or arguments in support of terminating a pregnancy based on ethical, medical, or personal criteria.

GINA

The Genetic Information Nondiscrimination Act, a U.S. law that protects individuals from genetic discrimination in health insurance and employment.

Genetic Tests

Laboratory methods used to identify changes in chromosomes, genes, or proteins, typically to discover genetic disorders or predispositions.