If the Economy Is Initially at Long-Run Equilibrium and Aggregate

question 87

Multiple Choice

If the economy is initially at long-run equilibrium and aggregate demand declines,then in the long run the price level

• A)and output are higher than in the original long-run equilibrium.
• B)and output are lower than in the original long-run equilibrium.
• C)is lower and output is the same as the original long-run equilibrium.
• D)is the same and output is lower than in the original long-run equilibrium.

---

Definitions:

Wine Drinkers

Individuals who consume wine, often with an appreciation for its varieties and pairings with food.

Interest Rate

The rate at which a loan accrues interest for the borrower, frequently expressed as an annual percentage of the loan's remaining value.

Antique

An item of considerable age valued for its aesthetic or historical significance, often regarded as collectible or desirable due to its rarity and craftsmanship.

Pleasure

A feeling of happiness, satisfaction, or enjoyment derived from various activities or experiences.