When the Aggregate Demand Curve and the Short-Run Aggregate Supply

question 132

Multiple Choice

When the aggregate demand curve and the short-run aggregate supply curve intersect,

• A)the long-run aggregate supply curve must also intersect at the same point.
• B)inflation must be increasing.
• C)structural and frictional unemployment equal zero.
• D)the economy is in short-run macroeconomic equilibrium.
• E)the economy likely to experience higher than normal unemployment.

---

Definitions:

Meditative State

A mental state achieved through practices of meditation, characterized by deep relaxation and a tranquil mind, often pursued for health, spiritual, or relaxation purposes.

Dissociative Theory

Dissociative Theory is a psychological model that explains dissociation as a process where certain thoughts, emotions, sensations, or memories are compartmentalized because they are too distressing for the conscious mind to handle.

Hypnotized

A trance-like state of focus and concentration achieved through hypnosis, in which a person may be more open to suggestion.

Hypnosis

A trance-like state of focused attention, heightened suggestibility, and deep relaxation, induced by psychological techniques.