Suppose That You Have the Following Information About the Economy

question 109

Multiple Choice

Suppose that you have the following information about the economy, where all figures are in millions of dollars:
Full employment output =$2,000
Consumption = $1,200 Investment = $400
Government spending = $500
Net exports =-$200
Because short-run output is ________ full-employment output, in the long run we would expect the price level to ________.

• A) less than; rise
• B) less than; fall
• C) greater than; rise
• D) greater than; fall
• E) equal to; remain unchanged

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Definitions:

Chlorination

The process of adding chlorine to water or organic molecules, either for disinfection purposes or to introduce chlorine atoms into molecules for chemical synthesis.

Propagation Step

A part of a chain reaction where intermediates react with the original reactants to produce more intermediates and products, continually propagating the reaction.

Propagation Steps

Sequences of reactions where reactive intermediates react to form products and new intermediates in a chain reaction mechanism.

Free-Radical Chlorination

A chemical reaction that involves the substitution of hydrogen atoms in alkanes with chlorine atoms via a free-radical mechanism.