Suppose the Economy Is in Long-Run Equilibrium

question 23

Multiple Choice

Suppose the economy is in long-run equilibrium. If the government increases its expenditures, eventually the increase in aggregate demand causes price expectations to

• A)rise.This rise in price expectations shifts the short-run aggregate supply curve to the right.
• B)rise.This rise in price expectations shifts the short-run aggregate supply curve to the left.
• C)fall.This fall in price expectations shifts the short-run aggregate supply curve to the right.
• D)fall.This fall in price expectations shifts the short-run aggregate supply curve to the left.

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Definitions:

Gelled Electrolyte

A type of battery electrolyte that has a gel-like consistency, often used in lead-acid batteries, providing advantages such as reduced leakage and maintenance.

Specific Gravity Reading

A measurement that indicates the density of a liquid compared to the density of water.

Completely Dead

A term often used to describe a totally unresponsive or non-functional electronic device or system.

Deep-cycling

The process of discharging and then fully charging a rechargeable battery, used to maximize the battery's lifespan.