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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