If the Economy Is Initially at Long-Run Equilibrium and Aggregate

question 87

Multiple Choice

If the economy is initially at long-run equilibrium and aggregate demand declines,then in the long run the price level

• A)and output are higher than in the original long-run equilibrium.
• B)and output are lower than in the original long-run equilibrium.
• C)is lower and output is the same as the original long-run equilibrium.
• D)is the same and output is lower than in the original long-run equilibrium.

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Definitions:

Within-subject Design

A research design where the same participants are subjected to each condition of an experiment, allowing comparison of their performance across conditions.

Experimental Condition

In research, this is the set of conditions applied to subjects that is manipulated by the researcher to observe its effects compared to a control condition.

Random Assignment

A method of assigning research participants to different groups using randomization, ensuring that each participant has an equal chance of being placed in any group.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.