Suppose the Economy Is in Long-Run Equilibrium

question 454

Multiple Choice

Suppose the economy is in 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. In the long-run, real GDP will rise and the price level might rise, fall, or stay the same.
• B)the price level will fall, and real GDP might rise, fall, or stay the same. In the long-run, real GDP and the price level will be unaffected.
• C)the price level will rise, and real GDP might rise, fall, or stay the same. In the long run, real GDP will rise and the price level will fall.
• D)the price level will fall, and real GDP might rise, fall, or stay the same. In the long run, real GDP will rise and the price level will fall.

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Definitions:

mRNA Molecule

A variety of RNA responsible for transporting genetic data from DNA to the ribosome, the site of protein synthesis.

Adenine

A nitrogenous base found in DNA and RNA, which pairs with thymine in DNA and uracil in RNA.

Thymine

One of the four nucleobases in the DNA molecule represented by the letter T, pairing with adenine (A).

Guanine

One of the four main nucleobases found in DNA and RNA, which pairs with cytosine in double-stranded DNA.