Starting from Long-Run Equilibrium, an Increase in Aggregate Demand Increases

question 51

Multiple Choice

Starting from long-run equilibrium, an increase in aggregate demand increases ______ in the short run, but only increases ______ in the long run.

• A) output; prices
• B) prices; output
• C) short-run aggregate supply; long-run aggregate supply
• D) the money supply; the natural rate of output

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Definitions:

Primary Patriarchalism

The original or fundamental system where men hold power over women in society.

Feudalism

A medieval European political, economic, and social system characterized by the granting of land in exchange for military service, operating on a hierarchy of lords and vassals.

Inheritance of Power

refers to the transfer of authority, control, or influence over others from one generation to another within families, dynasties, or organizations.

Rational Thoughts

The process of thinking clearly, logically, and without emotional bias.