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Suppose the Economy Is Operating in Long-Run Equilibrium and a Positive

question 12

Multiple Choice

Suppose the economy is operating in long-run equilibrium and a positive demand shock hits.We expect a short-run increase in real GDP and the price level and a long-run _____ in real GDP and _____ in the price level.


Definitions:

Fitness Level

A measure of one's physical health and abilities, often determined by factors such as strength, endurance, flexibility, and body composition.

Living Arrangement

The configuration of one's household, including who one lives with and the nature of those relationships.

Residential Community

A geographic area where people live close to one another and share common spaces or amenities, often governed by specific rules or associations.

Nursing Home

A residential facility offering a high level of care for the elderly or those with severe health issues, including medical and personal care.

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