Suppose the Economy Is Initially in Long-Run Equilibrium

question 140

Multiple Choice

Suppose the economy is initially in long-run equilibrium.Which of the following best describes the effects of a shift in aggregate demand?  

• A) Prices and output are affected in the short run and in the long run. 
• B) Prices and output are affected only in the short run. 
• C) Prices are affected in the long run and in the short run, but output is affected only in the short run. 
• D) Prices are affected in the long run and in the short run, but output is affected only in the long run.

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Definitions:

Ineffective Coping

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High Tolerance

The capacity to endure a high level of a substance, stimulus, or stress without adverse reaction.

Detox Protocol

A detox protocol is a medically supervised plan designed to safely eliminate toxic substances from the body, often used in the context of substance abuse treatment to manage withdrawal symptoms.