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

question 83

Multiple Choice

Suppose Canada's economy is in a long- run equilibrium with real GDP equal to potential output. Now suppose there is an increase in world demand for Canada's goods. In the short run, . In the long run, .

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

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Definitions:

Double-Stranded RNA

Double-stranded RNA is a molecular structure that consists of two complementary strands of RNA molecules, often playing a role in gene regulation and antiviral defense mechanisms.

Gene Expression

The process by which information from a gene is used to synthesize functional gene products such as proteins, influencing an organism's structure and functions.

Ribosome-mRNA-Polypeptide Complex

A cellular structure in which ribosomes, mRNA, and a growing polypeptide chain come together during protein synthesis.

Rough ER

A part of the endoplasmic reticulum with ribosomes attached to its surface, involved in protein synthesis and folding.