If a Short-Run Equilibrium Occurs at a Level of Output

question 98

Multiple Choice

If a short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will ______ and output will ______.

• A) increase; increase
• B) decrease; decrease
• C) increase; decrease
• D) decrease; increase

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Definitions:

De Jure

Latin for "by law," it refers to something that exists by legal or official establishment.

Segregation

The enforced separation of different racial or socio-economic groups within the same community or establishment, often discussed in the context of historical and contemporary racial discrimination.

Public Schools

Educational institutions funded and administered by the government, providing free education to children in the community.

Civil Rights Act

Landmark legislation in the United States that outlawed discrimination based on race, color, religion, sex, or national origin, originally enacted in 1964.