Suppose the Economy Is in Long-Run Equilibrium

question 14

Multiple Choice

Suppose the economy is in long-run equilibrium. In a short span of time, there is a large influx of skilled immigrants, a major new discovery of oil, and a major new technological advance in electricity production. In the short run, we would expect

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

Recognize the critical factors impacting location decisions for manufacturing and service operations.

Analyze industrial location decisions to minimize costs and maximize operational efficiency.

Evaluate political and social risks associated with operating in different countries.

Understand the importance of strategic location clustering for businesses.

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Definitions:

Amygdala

A small, almond-shaped cluster of nuclei located deep within the temporal lobes of the brain, involved in processing emotions such as fear, anger, and pleasure.

Low Birth Weight

A condition in newborns weighing less than 2,500 grams (5 pounds, 8 ounces) at birth, often associated with premature birth or poor prenatal growth.

Maternal Diabetes

A condition where a woman develops diabetes during pregnancy, known as gestational diabetes, or enters pregnancy with pre-existing diabetes.

Schizophrenia

A disorder of the psyche that manifests as irregularities in conceptual processes, sensation interpretation, affective reactions, and social rapport.