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:

Stable Product

A chemical compound that remains unchanged under specified conditions and is resistant to degradation or reaction.

Major Product

The compound that is formed in the largest quantity during a chemical reaction, as predicted by reaction mechanisms.

Diene

Organic compounds that contain two double bonds.

HBr

Hydrobromic acid, a diatomic molecule consisting of hydrogen and bromine, used commonly in organic synthesis and as a reagent.