The Stock Market Boom of 2010

question 50

Multiple Choice

The Stock Market Boom of 2010
Imagine that in 2010 the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some time.
-Refer to Stock Market Boom 2010.How is the new long-run equilibrium different from the original one?

• A)the price level and real GDP are higher
• B)the price level and real GDP are lower.
• C)the price level is higher and real GDP is the same.
• D)the price level is the same and real GDP is higher.

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Definitions:

Potentiation

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Double Bind

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Narcotic Antagonist

A medication that blocks or reverses the effects of opioids.

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Specific areas on cell surfaces that bind endorphins, leading to pain relief and feelings of pleasure.