If a shock to aggregate demand occurs, the period of the initial change in real GDP is called
A) the short run.
B) the medium run.
C) the long run.
D) a recovery.
E) the steady state.
Correct Answer:
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Q13: The short run is usually
A)less than half
Q14: The short-run effects of an increase in
Q15: If real GDP is below potential GDP,
A)long-run
Q16: If real GDP stays below potential GDP,
A)the
Q17: The long-run effect of a decrease in
Q19: The medium run is usually
A)two to three
Q20: The initial response of real GDP to
Q21: Suppose real and potential GDP are initially
Q22: In economics, the short run is an
Q23: In the short run, when government purchases
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