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

question 144

Multiple Choice

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

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

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Definitions:

Managing Up

The practice of managing one's relationship with and influence on superiors or higher-ups in an organization.

Grapevine

An informal, often unofficial channel of communication within an organization or social network.

Informal Network

is the set of relationships and channels of communication that are not officially prescribed but emerge naturally among people within an organization, often influential in spreading information and influencing decisions.

Horizontal Communication

Communication between peers.