If Short-Run Equilibrium Output Is Above Full-Employment Output,then in the Long

question 78

Multiple Choice

If short-run equilibrium output is above full-employment output,then in the long run input prices will

• A) decrease and output will increase.
• B) increase and output will be unaffected.
• C) increase and short-run aggregate supply will increase.
• D) increase and output will fall.
• E) decrease and output will fall.

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Definitions:

Halite

Also known as rock salt, a mineral form of sodium chloride (NaCl) that often occurs in evaporite deposits.

Crystal

A solid material whose atoms are arranged in highly ordered, repeating patterns extending in all three spatial dimensions.

Cleavage

The tendency of a mineral to break along flat planar surfaces as determined by the mineral’s crystal structure, often enhancing its gem quality.

Atoms

The basic units of matter consisting of a nucleus surrounded by electrons, making up all chemical elements.