Suppose Canada's Economy Is in a Long-Run Equilibrium with Real

question 91

Multiple Choice

Suppose Canada's economy is in a long-run equilibrium with real GDP equal to potential output.Now suppose there is an unexpected and sharp reduction in desired business investment expenditure.In the short run,________.In the long run,________.

• A)real GDP and the price level both fall; real GDP is at its original level with a lower price level
• B)real GDP and the price level both fall; real GDP is above its original level with a higher price level
• C)real GDP and the price level both rise; real GDP returns to its original level with a higher price level
• D)real GDP rises and the price level falls; real GDP returns to its original level with a lower price level
• E)real GDP falls and the price level rises; real GDP is below its original level with a higher price level

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Definitions:

Sexual Harassment

Inappropriate sexual proposals, pleas for sexual benefits, and different types of sexual harassment through words or actions.

Job Satisfaction

The level of contentment individuals feel about their work, which can influence their motivation, performance, and overall well-being.

Lower Commitment

The reduced level of dedication or loyalty towards an organization, task, or relationship.

Negative Side Effect

Unintended and harmful outcomes that occur as a result of an action, procedure, or medication, despite the primary intentions being beneficial.