Suppose the Economy Is in Long-Run Equilibrium

question 14

Multiple Choice

Suppose the economy is in long-run equilibrium. In a short span of time, there is a large influx of skilled immigrants, a major new discovery of oil, and a major new technological advance in electricity production. In the short run, we would expect

• A) the price level to rise and real GDP to fall.
• B) the price level to fall and real GDP to rise.
• C) the price level and real GDP both to stay the same.
• D) All of the above are possible.

---

Definitions:

Customer Value

The valuation of a product or service by a consumer against its alternatives.

Strategic Marketing Process

A deliberate approach aimed at creating and implementing effective marketing strategies that align with a company’s overall goals and drive competitive advantage.

Visionary Organization

An organization characterized by its forward-thinking approach and strategic planning to innovate and shape its future industry or sector.

Marketing Environment

Consists of the internal and external factors that affect a company's marketing strategies, including economic, technological, sociocultural, and regulatory forces.