Scenario 33-2 Imagine That in the Current Year the Economy Is in Is

question 168

Multiple Choice

Scenario 33-2
Imagine that in the current year the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some time.
-Refer to Scenario 33-2. In the short run what happens to the price level and real GDP?

• A)Both the price level and real GDP rise.
• B)Both the price level and real GDP fall.
• C)The price level rises and real GDP falls.
• D)The price level falls and real GDP rises.

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