Suppose the Economy Is in Long-Run Equilibrium

question 121

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.What would we expect to happen 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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A user-defined stopping point set along the horizontal ruler in word processing programs to align text.

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