Suppose That the Economy Is at Long-Run Equilibrium

question 442

Multiple Choice

Suppose that the economy is at long-run equilibrium. If there is a sharp decline in the stock market combined with a significant increase in immigration of skilled workers, then 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.

---

Definitions:

Note Amortization Table

A schedule detailing each payment on an amortizing loan, including amounts allocated for principal and interest over a specified period.

Annual End-of-year Payments

Payments made at the end of each fiscal year, often referring to dividends, bonuses, or installment payments due.

Journal Entries

These are recordings of financial transactions in the accounting books, documenting the debit and credit accounts affected by each transaction.

Purchase

The action of buying goods or services for business use or resale.