If the Short-Run Aggregate Supply Increases by Less Than the Long-Run

question 108

Multiple Choice

If the short-run aggregate supply increases by less than the long-run aggregate supply,then,at the short-run equilibrium

• A)GDP will be below potential GDP.
• B)aggregate demand will increase.
• C)GDP will be above potential GDP.
• D)GDP will be equal to potential GDP.

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Definitions:

Biological Functions

The processes and activities carried out by living organisms to maintain life, including growth, reproduction, and response to stimuli.

Playful

Exhibiting behavior that is lighthearted, fun, and often imaginative, typically associated with children but also observed in adults.

Temperamental Variation

Differences in emotional and behavioral responses among individuals, which are often evident from an early age and influenced by genetic factors.

Effortful Control

The ability to regulate one's emotions and actions through conscious, volitional control instead of automatic responses.