Starting from Long-Run Equilibrium,what Impact Will a Decrease in Aggregate

question 74

Multiple Choice

Starting from long-run equilibrium,what impact will a decrease in aggregate demand have?

• A)It will shift the LRAS curve to the right.
• B)It will result in a higher price level.
• C)It will decrease unemployment.
• D)It will cause a recessionary gap.

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Definitions:

Exergonic Reaction

A chemical reaction that releases energy by light or heat, making it energetically favorable.

Free Energy

The portion of a system's energy that is able to perform work when temperature and pressure are uniform throughout the system.

Concentration Gradient

A concentration gradient is a variation in the concentration of a substance across a space or a membrane, leading to the movement of particles from an area of higher concentration to an area of lower concentration.

Expend Energy

The act of using biological or mechanical power for physical activities, processes, or to accomplish tasks.