In the Long Run, Policy That Changes Aggregate Demand Also

question 80

Multiple Choice

In the long run, policy that changes aggregate demand also changes which of the following?

• A)both unemployment and the price level
• B)neither unemployment nor the price level
• C)only unemployment
• D)only the price level

---

Definitions:

Nonexcludable

Characterizes a good or service for which it is not possible to prevent individuals who do not pay from consuming it, leading to potential free-rider problems.

Nonpaying Customers

Individuals who receive a good or service without providing monetary compensation.

Externality

A cost or benefit caused by a producer that is not financially incurred or received by that producer.

Pollution

The contamination of the environment by harmful substances or waste, leading to adverse effects on living organisms and ecosystems.