In the Long Run in the Keynesian Model,a Beneficial Supply

question 72

Multiple Choice

In the long run in the Keynesian model,a beneficial supply shock would leave the economy with a higher level of output,but also a ________ real interest rate and a ________ price level.

• A)higher; lower
• B)lower; higher
• C)lower; lower
• D)higher; higher

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Definitions:

Note Receivable

A financial asset representing a promise to receive a specific amount of money, sometimes with interest, from another party on a future date.

Dishonored

A term used to describe a cheque or negotiable instrument that a bank refuses to pay or accept due to insufficient funds or other reasons.

Accounting Equation

A fundamental principle in finance that states assets equal liabilities plus equity.

Note Settlement

The process of fulfilling the obligations of a promissory note, typically involving the payment of the principal and accrued interest.