Suppose the Economy Is in Long-Run Equilibrium and the Government

question 51

Multiple Choice

Suppose the economy is in long-run equilibrium and the government decreases its expenditures.Which of the following helps explain the logic of why the economy moves back to long-run equilibrium?

• A)as people revise their price-level expectations upward,firms and workers strike bargains for higher nominal wages.
• B)as people revise their price-level expectations upward,firms and workers strike bargains for lower nominal wages.
• C)as people revise their price-level expectations downward,firms and workers strike bargains for higher nominal wages.
• D)as people revise their price-level expectations downward,firms and workers strike bargains for lower nominal wages.

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Definitions:

Equal Precedence

A term used in programming to describe operators that have the same level of priority in the order of evaluation.

Member Operator

This usually refers to operators that access elements or functions within structured data types, like the dot (.) operator in C++ used for object members.

Structure Pointer Operator

An operator used in programming languages like C to access members of a structure through a pointer.

Linked List of Structures

A linked list of structures is a data structure where each element is a structure and elements are connected using pointers, allowing dynamic memory management.