If the Economy Was Initially at a Long-Run Equilibrium, the Short-Run

question 116

Multiple Choice

If the economy was initially at a long-run equilibrium, the short-run effects from a decrease in aggregate demand will include:

• A)A recessionary gap
• B)A decrease in potential output
• C)An increase in the current inflation rate
• D)A decrease in the target rate of inflation

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Definitions:

Parenting

The process of promoting and supporting the physical, emotional, social, and intellectual development of a child from infancy to adulthood.

Authoritative Parents

A parenting style characterized by high responsiveness and high demands, where parents set clear standards and are assertive without being intrusive or restrictive.

Authoritarian Parents

A parenting style characterized by high demands and low responsiveness, where parents impose strict rules and expect obedience without question.

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are lenient and minimally controlling but highly communicative.