Beginning from a Position of Long-Run Equilibrium,suppose There Is an Increase

question 34

Multiple Choice

Beginning from a position of long-run equilibrium,suppose there is an increase in the aggregate demand curve.After adjustment and comparing the economy's new long-run equilibrium with its original long-run position,the result would be an increase in:

• A) real GDP.
• B) the price level (CPI).
• C) the unemployment rate.
• D) a and b, but not

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Definitions:

Forgone Current Income

The income an individual or entity could have earned but chose to forego for pursuing an alternative.

State Universities

Public institutions of higher education that are primarily funded by a state or local government.

Opportunity Cost

The result of losing potential upsides from other choices by committing to one.

Market Price

The current market price for purchasing or selling goods or services.