Suppose the Economy Is Initially in Long-Run Equilibrium

question 56

Multiple Choice

Suppose the economy is initially in long-run equilibrium. Which of the following events leads to a decrease in the price level and real GDP in the short run?

• A) A decrease in health insurance premiums paid by firms raises the cost of employing labor
• B) An increase in government transfer payments
• C) An increase in the cost of a key input such as oil
• D) A sharp fall in stock market prices

Know how to effectively prepare for and navigate through a job interview.

Learn the operations and fee structures of private employment agencies.

Understand the role and formulation of performance objectives within a practicum.

Acknowledge the significance of ongoing education and information acquisition in one’s field.

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Definitions:

S-shaped Curve

A curve that depicts a scenario where growth starts slowly, accelerates, and then slows down again, often used in biology, product life cycles, and technology adoption.

Supply Chain Management

The management of the flow of goods and services from the initial production of a product through to its delivery to the end consumer.

Customer Relationship Management

A strategic approach that uses data analysis and customer interactions to improve business relationships and customer satisfaction.

Intranet

A private network used within an organization to share information, operational systems, or computing services only among employees.