Suppose the Economy Is Initially in Long-Run Equilibrium

question 132

Multiple Choice

Suppose the economy is initially in long-run equilibrium. Which of the following events leads to an increase 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

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Definitions:

Ethics Competency

The ability to recognize ethical issues, make informed ethical judgments, and take appropriate ethical actions reflecting both the standards of professional practice and the broader community expectations.

Core Components

The fundamental elements or parts that are necessary for the functionality or identity of a system, concept, or strategy.

Ethical Competency

The capacity to understand, evaluate, and act upon moral principles and values in decision-making and behavior.

Ethical Dilemmas

Situations in which individuals are required to choose between two conflicting moral principles, making it difficult to decide the right course of action.