If an Economy Was Initially in Long-Run Equilibrium,an Unanticipated Increase

question 182

Multiple Choice

If an economy was initially in long-run equilibrium,an unanticipated increase in aggregate demand will tend to cause

• A)an increase in unemployment.
• B)a decrease in the price of resources.
• C)a reduction in real output that will spiral downward into a prolonged recession.
• D)a temporarily high level of output and employment that cannot be maintained.

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Definitions:

Operating Departments

Departments within an organization that are directly involved in carrying out its primary activities or business operations.

Allocating Costs

The process of distributing expenses among various departments, products, or services based on predetermined criteria.

Service Departments

Divisions within a company that provide support and services to other departments rather than directly generating revenue.

Indirect Expenses

Costs that are not directly associated with the production of goods or services but necessary for the business to operate, like rent and utilities.