Multiple Choice
When all prices (including wages) have fully adjusted to previous shifts in aggregate supply or demand and the flow of spending, saving, borrowing, and lending will continue until something else changes, this is called
A) the substitution-of-foreign-goods effect.
B) the wealth effect or real-balances effect.
C) the constant nominal income effect.
D) long-run equilibrium.
Correct Answer:

Verified
Correct Answer:
Verified
Q64: The short-run aggregate supply curve is upward
Q65: If the economy is in short-run equilibrium
Q66: In the long run, if aggregate demand
Q67: Which of the following is most likely
Q68: The substitution effect means consumers substitute good
Q70: _explains why price level decreases for a
Q71: Which of the following is not a
Q72: The largest component of spending is which
Q73: The short-run aggregate supply curve will shift
Q74: In the AD/AS framework, the natural level