Suppose the Economy Is in Long-Run Equilibrium

question 92

Multiple Choice

Suppose the economy is in long-run equilibrium. In a short span of time, there is a pessimistic revision of expectations about future business conditions and an unexpected rise in the value of the dollar. In the short run, we would expect

• A) the price level and real GDP both to rise.
• B) the price level and real GDP both to fall.
• C) the price level and real GDP both to stay the same.
• D) All of the above are possible.

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Definitions:

Subset

A set containing some or all elements of another set, without any additional elements.

Frame

In survey research, a frame is a list or representation of all the elements in the population from which a sample is drawn.

Quota Sample

A non-random sampling technique where individuals are selected based on certain traits or characteristics until a predetermined number is reached.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers and competitors.