Consider an Economy Initially at Long-Run Equilibrium with Output (Y)equal

question 133

Multiple Choice

Consider an economy initially at long-run equilibrium with output (Y) equal to potential output (Y*) .If the SRAS curve is positively sloped,then an increase in the demand for Canadian-made goods in Europe will lead to ___________ in the price level,in the short run.In the long run,the SRAS curve will shift to the left and the equilibrium will be at _________.

• A) an increase;Y = Y*
• B) a decrease;Y > Y*
• C) no change;Y = Y*
• D) an increase;Y > Y*
• E) a decrease;Y = Y*

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Definitions:

Important Aspirations

Goals or ambitions that hold significant value to an individual or group, often guiding their actions and decisions.

Happy

A state of well-being and contentment, often characterized by positive emotions ranging from contentment to intense joy.

Effective Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period.