In the Long-Run Equilibrium, an Increase in the Quantity of Capital

question 374

Multiple Choice

In the long-run equilibrium, an increase in the quantity of capital leads to

• A) an increase in the equilibrium price level and an increase in equilibrium real GDP.
• B) a decrease in the equilibrium price level and an increase in equilibrium real GDP.
• C) a decrease in the equilibrium price level, but no change in equilibrium real GDP.
• D) no change in the equilibrium price level, but an increase in equilibrium real GDP.

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Definitions:

Conflicts

Situations or internal states in which incompatible goals, needs, or desires lead to psychological tension and struggle.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.

Reinforcement Value

The significance or appeal of a potential reward that strengthens or increases the likelihood of a desired response or behavior.

Outcome

The result or effect of an action, situation, or event.