An Economy Is in Long-Run Equilibrium When Aggregate Supply Unexpectedly

question 82

Multiple Choice

An economy is in long-run equilibrium when aggregate supply unexpectedly decreases. Then real GDP (ceteris paribus) will be

• A)above potential GDP.
• B)below potential GDP.
• C)equal to potential GDP.
• D)either above, below, or equal to potential GDP depending on the position of the aggregate demand curve.
• E)either above or equal to potential GDP depending on the position of the aggregate demand curve.

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Definitions:

Distractions

External or internal factors that divert an individual's attention away from the task at hand, potentially decreasing productivity and performance.

Culture Specific

Characteristics, beliefs, or practices that are unique to a particular society, community, or group.

Unconsciously

Occurring without one's awareness, reflecting actions or thoughts that are not controlled or deliberated by the conscious mind.

Paraphrasing

The process of rewording or rephrasing information using different vocabulary and sentence structures while retaining the original meaning.