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

question 108

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.

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Definitions:

Active Ingredient

The component of a product that is responsible for its effects or therapeutic benefits.

Marijuana

A psychoactive drug from the Cannabis plant, used for medical or recreational purposes.

THC

The main psychoactive compound in cannabis that causes the high sensation, known scientifically as delta-9-tetrahydrocannabinol.

Methamphetamine

A powerful, highly addictive stimulant that affects the central nervous system, known for its use as a recreational drug that can lead to harmful physical and psychological effects.