The Economy Is in Both a Short- and Long-Run Equilibrium

question 20

Multiple Choice

The economy is in both a short- and long-run equilibrium if:

• A)Current inflation equals expected inflation and current output equals potential output
• B)The aggregate demand curve intersects the short-run aggregate supply curve
• C)The long-run aggregate supply curve is at potential output
• D)The short-run aggregate supply curve intersects the long-run aggregate supply curve at potential output

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Definitions:

Adolescence

A developmental phase following childhood, characterized by significant physical, psychological, and social changes, leading to adult maturity.

Inherited Predispositions

Genetic tendencies or traits that influence behavior, personality, and physical attributes.

Biological Approach

An approach in psychology focusing on genetic, neurological, and physiological explanations for behavior and mental processes.

Aggressive Behavior

Actions that can cause physical or emotional harm to others, or the intention to dominate, hurt or damage something or someone.