When economic growth (a gradual shift of LRAS to the right) expands the production possibilities of an economy,
a. a higher rate of real output can be achieved in the short run, but it cannot be sustained in the long run.
b. a larger output can be attained even if unemployment remains at its natural rate.
c. the general level of prices will rise if the money supply is held constant.
d. the equilibrium in the goods and services market will be disrupted.
B
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Indicate whether the statement is true or false
One lesson that American policy makers can learn from the health care systems of other counties is
a. people must be willing to accept long waiting lists for expensive services. b. a government-run system ensures equal access across socio-economic groups. c. the importance of having a safety valve. d. the mix between general practitioners and specialists is of little importance. e. private insurance cannot complement government insurance.