If the Economy Is Initially in Long-Run Equilibrium, Which of the Following

question 95

Multiple Choice

If the economy is initially in long-run equilibrium, which of the following best describes the effects of a shift in aggregate demand?

• A)Prices and output are affected in both the short and long run.
• B)Prices and output are affected only in the short run.
• C)Prices are affected in the long and short run, but output only in the short run.
• D)Prices are affected in the long and short run, but output only in the long run.

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Definitions:

Moral Evaluation

The process of judging the rightness or wrongness of actions based on ethical principles and moral codes.

Objectivity

The quality of being unbiased, impartial, and not influenced by personal feelings or opinions in considering and representing facts.

Subordinate Performance

Refers to the output or work-productivity levels of employees who report directly to a manager or supervisor.

Transformational Leadership

A leadership approach that inspires and motivates followers to exceed expectations and achieve extraordinary outcomes through visionary change.