Suppose the Economy Is in Long-Run Equilibrium

question 386

Multiple Choice

Suppose the economy is in long-run equilibrium. Concerns about pollution cause the government to significantly restrict the production of electricity. At the same time, the value of the dollar falls. 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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Definitions:

One-sided Messages

Persuasive messages that present only one perspective or aspect of an argument, often used when the audience is already in agreement or unaware of opposing viewpoints.

Less-educated People

Individuals who have received minimal formal education or possess lower educational qualifications.

More-educated People

Individuals possessing a higher level of formal education, often characterized by having completed college degrees or other advanced studies.

Fear-inspiring

Eliciting fear through certain stimuli or situations, often used to influence behavior or perceptions.