Suppose the Economy Is in Long-Run Equilibrium

question 96

Multiple Choice

Suppose the economy is in long-run equilibrium.If there is a tax cut at the same time that major new sources of oil are discovered in the country,then in the short-run we would expect

• 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:

Assignment of Rights

The transfer of legal rights from one party to another, often involving debts or benefits under a contract.

Assignment of Duties

The process of allocating responsibilities and tasks to individuals or groups in an organization.

Breach of Contract

The failure or refusal of a party to fulfill its obligations as outlined in a mutually agreed-upon legal document.

Assignment Form

A legal document used to transfer rights or interests from one party to another.