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:

Behaviourism

A theoretical approach that focuses on studying behaviors that can be observed and measured, often disregarding internal processes like cognition.

Observable Behaviour

Actions or reactions that can be seen and measured, often used in behaviorist psychology to study and modify behavior.

Cellular Activity

The various processes and functions that occur within living cells, encompassing biochemical reactions, signal transduction, and energy production.

Tranquillizers

Medications used to reduce tension or anxiety, often by depressing nervous system activity.