If the Current Short-Run Equilibrium Level of Output Is Greater

question 128

Multiple Choice

If the current short-run equilibrium level of output is greater than full employment output,we can then expect that in the long run:

• A) the price level will rise and short-run aggregate supply will fall.
• B) the price level will rise and aggregate demand will fall.
• C) the price level will fall and short-run aggregate supply will rise.
• D) the price level will fall and aggregate demand will rise.
• E) the long-run aggregate supply will increase.

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Definitions:

Vasoconstriction

The narrowing of blood vessels by small muscles in their walls, which decreases blood flow and increases blood pressure.

Vasodilation

The widening of blood vessels, which decreases blood pressure and allows more blood to flow to different parts of the body.

Hyperthermia

An abnormally high body temperature, often caused by prolonged exposure to high temperatures or medical conditions, leading to heat-related illnesses.

Elevated Temperature

A condition where the body's temperature is higher than normal, often indicating a fever or infection.