Suppose the Economy Is Initially in Long-Run Equilibrium

question 53

Essay

Suppose the economy is initially in long-run equilibrium.For each of the shocks listed below,explain the long-run effects on output and the price level.
(a)Labor supply decreases.
(b)The government shuts down the Bureau of Economic Analysis.
(c)Productivity increases.

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Definitions:

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior.

Mental Disorder

A broad range of conditions affecting mood, thinking, and behavior, often impacting day-to-day functioning and relationships.

Biological Origin

The concept focusing on the genetic, evolutionary, and physiological bases of behavior and traits in living organisms.

Deviance

Deviance encompasses actions or behaviors that violate societal norms and expectations, often drawing social disapproval or sanction.