Suppose the Economy Is in Long-Run Equilibrium

question 83

Multiple Choice

Suppose the economy is in long-run equilibrium. If there is a sharp increase in the stock market combined with a significant number of skilled workers retiring, what would we expect to happen in the short run?

• A) Real GDP will rise, and the price level might rise, fall, or stay the same.
• B) Real GDP will fall, and the price level might rise, fall, or stay the same.
• C) The price level will rise, and real GDP might rise, fall, or stay the same.
• D) The price level will fall, and real GDP might rise, fall, or stay the same.

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