Suppose the Economy Is in Long-Run Equilibrium

question 55

Multiple Choice

Suppose the economy is in long-run equilibrium.If there is an increase in the supply of labor as well as an increase in the money supply,then we would expect that 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:

Null Hypothesis

In statistics, it is the default or initial presumption that there is no effect or no difference, often symbolized as H0.

Alternative Hypothesis

A statistical hypothesis that proposes a difference or effect, in contrast to the null hypothesis which suggests no effect or relationship.

Wilcoxon Signed Rank Test

A nonparametric statistical test used when comparing two related samples or repeated measurements on a single sample to assess whether their population mean ranks differ.

Null Hypothesis

A default hypothesis that indicates no effect or no difference, and is tested against an alternative hypothesis.