If the Short-Run Aggregate Supply Increases by Less Than the Long-Run

question 67

Multiple Choice

If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium,

• A)GDP will be below potential GDP.
• B)aggregate demand will increase.
• C)GDP will be above potential GDP.
• D)GDP will be equal to potential GDP.
• E)unemployment will fall.

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Definitions:

Animal Evolution

The gradual development of diverse species of animals over geological time from common ancestors through changes in traits and genetics.

Blastopore

The initial opening that develops during early embryonic development in animals, leading to the formation of the digestive tract.

Deuterostomes

A grouping of animals characterized by their embryonic development; during the formation of the mouth and anus, the anus forms before the mouth.

Protostomes

A group of animals within the animal kingdom that develop the mouth before the anus during embryonic development, as part of the blastopore’s fate.