Question

From an initial​ long-run equilibrium, if aggregate demand grows faster than​ long-run and​ short-run aggregate​ supply, then Congress and the president would most likely

Answer 1

Answer:

Decrease government spending.

Explanation:

Stating the initial fact that equilibrium can directly be explained to be a concept requiring a government official to borrow. And also in certain views by economists who conceive of economic processes as analogous to physical phenomena such as velocity, friction, heat, or fluid pressure.

In the case above, from the initial ong-run of this said equilibrium which shows aggregate demand grows faster than long-run and also in that of short-run supply, congress and the president are most certain to reduce government spending. It is somewhat explained also that physical forces are balanced in a system, no further change occurs.