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Suppose That the Economy Is Initially in a Long-Run Macroeconomic

question 104

Multiple Choice

Suppose that the economy is initially in a long-run macroeconomic equilibrium.A shock then hits the economy and we observe that the unemployment rate decreases and the price level decreases.We can conclude that ________ has increased and there is now a(n) ________ gap.


Definitions:

Glucose

A basic glucose molecule serving as a vital energy source in life and a component in many types of carbohydrates.

Glycogen

An energy-storing polysaccharide made of glucose, found in animals and fungi, with a branched structure.

Animals

Living organisms that are characterized by voluntary movement, responsive to their environment, and consumption of organic substances.

Carbohydrate

Organic compounds made of carbon, hydrogen, and oxygen, serving as a major energy source for the body.

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