Examlex

Solved

Suppose the Economy Is Initially in Long-Run Equilibrium

question 71

Multiple Choice

Suppose the economy is initially in long-run equilibrium. Now suppose oil prices rise sharply and at the same time, policymakers pursue expansionary monetary and fiscal policies. Which of the following will occur as a result of these two events, given that supply-side effects dominate demand-side effects?


Definitions:

Aesthetic Principles

Fundamental ideas about what is visually appealing or beautiful in art and design.

Ideology

A collection of thoughts and principles, particularly one that underpins the foundation of economic or political theories and policies.

Ethos

The characteristic spirit, moral values, or guiding beliefs of a person, community, or culture.

Collectivist

Pertaining to cultural or social practices that emphasize the group, community, or collective over the interests of the individual.

Related Questions