If an Economy Is Initially at a State of Long-Run

question 12

Multiple Choice

If an economy is initially at a state of long-run equilibrium, the short-run effect(s) from a decrease in aggregate demand will include:

• A)An expansionary gap
• B)A higher rate of inflation
• C)A higher level of potential output
• D)A recessionary gap

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Definitions:

Human Need

A basic requirement human beings need to survive and function, such as food, water, shelter, and clothing.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and influence their behaviors and attitudes.

Culture

The shared beliefs, values, norms, and practices that characterize a group of people or a society.

Marketing Mix

The marketing mix is a foundational concept in marketing that outlines the several critical components of a marketing strategy, commonly identified as the 4Ps: Product, Price, Place, and Promotion.