Assume That in the Long Run Input Prices Fully Adjust

question 88

Essay

Assume that in the long run input prices fully adjust to changes in output prices. Use a diagram to indicate the effect of an expansionary fiscal policy on the price level and equilibrium level of output in the long run.

---

Definitions:

Advertising

The act or practice of calling public attention to one's product, service, need, etc., especially by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.

Promotional Mix

The combination of marketing tools used by a business to achieve its marketing objectives, including advertising, sales promotion, public relations, and direct marketing.

Strengths/Advantages

Positive attributes or aspects of something that give it a competitive edge or make it superior in some respects.

Weaknesses/Disadvantages

The aspects of a situation or organization that are detrimental to achieving success or objectives.