If Strong Aggregate Demand Is Pushing the Economy Beyond Potential

question 229

Multiple Choice

If strong aggregate demand is pushing the economy beyond potential real GDP,which of the following must be true?

• A)The economy is at an equilibrium that is on the long-run aggregate supply curve.
• B)The economy is at an equilibrium that is on the long-run Phillips curve.
• C)The economy is at an equilibrium that is not on the long-run Phillips curve.
• D)Expansionary monetary policies will push the economy back to the long-run Phillips curve.

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The activities and processes of the body's systems and organs, maintaining life and health.

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Any individual entity that embodies the properties of life, including the ability to grow, reproduce, metabolize, respond to stimuli, and adapt to the environment.

Tolerance

The ability or willingness to tolerate the existence of opinions or behavior that one dislikes or disagrees with.

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The physiological and psychological outcomes resulting from the consumption of a pharmaceutical or recreational substance.