If the Average Interval Between Firms' Price Adjustments Is Relatively

question 65

Multiple Choice

If the average interval between firms' price adjustments is relatively long

• A) an increase in aggregate demand will cause a relatively short-lived increase in real GDP.
• B) an increase in aggregate demand will cause a relatively long-lived increase in real GDP.
• C) a reduction in aggregate demand will cause a relatively short-lived reduction in real GDP.
• D) none of the above.

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Definitions:

Decompression Sickness

A condition arising from dissolved gases coming out of solution into bubbles inside the body on depressurization.

Gas Bubbles

Pockets of gas trapped within a liquid or solid material, often forming through chemical reactions, heating, or decompression.

Carbonic Anhydrase

An enzyme that catalyzes the conversion of carbon dioxide and water into bicarbonate and protons, critical for maintaining acid-base balance in blood and tissues.

Tidal Volume

The volume of air that is inhaled or exhaled in a single breath during normal breathing.