Suppose the Economy Is Initially in Long-Run Equilibrium

question 102

Multiple Choice

Suppose the economy is initially in long-run equilibrium.After an increase in aggregate demand, which of the following describes the state of the economy in the long run?  

• A) Prices are higher, and output is higher. 
• B) Prices are lower, and output is lower. 
• C) Prices are higher, and output is the same. 
• D) Prices are the same, and output is lower.

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Definitions:

Biomedical Advances

Developments and improvements in medical technology, treatments, and knowledge that enhance healthcare and disease management.

Public Health System

The public health system is composed of government-run programs that ensure access to clean drinking water, basic sewage and sanitation services, and inoculation against infectious diseases.

Health Inequality

Differences in health status or in the distribution of health resources among different population groups, arising from the social conditions in which people are born, grow, live, work, and age.

Environmental Hazards

Potential sources of danger to life, health, property, or the environment, originating from natural events or human activities affecting ecological health.