Suppose the Economy Is in Long-Run Equilibrium

question 386

Multiple Choice

Suppose the economy is in long-run equilibrium. Concerns about pollution cause the government to significantly restrict the production of electricity. At the same time, the value of the dollar falls. In the short-run

• 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:

Reciprocity

A principle or practice of mutual exchange, where actions or benefits are returned in kind, often as part of social or economic interactions.

Encourage Consumers

The act of motivating potential buyers to consider, purchase, or support a product or service.

Opinions Invited

A request or situation where individuals are encouraged to share their thoughts, feelings, or feedback.

Pick List

A document used in the warehouse or inventory management that lists the items to be picked for shipping or processing.