The Economy Is in Long-Run Equilibrium

question 130

Multiple Choice

The economy is in long-run equilibrium. Suppose that automatic teller machines become cheaper and more convenient to use, and as a result the demand for money falls. Other things equal, what would we expect will happen to the price level and real GDP in the short and long run?

• A)In the short run, the price level and real GDP would rise, but in the long run they would both be unaffected.
• B)In the short run, the price level and real GDP would rise, but in the long run the price level would rise and real GDP would be unaffected.
• C)In the short run, the price level and real GDP would fall, but in the long run they would both be unaffected.
• D)In the short run, the price level and real GDP would fall, but in the long run the price level would fall and real GDP would be unaffected.

---

Definitions:

Family Service Policies

Guidelines and rules designed to govern the delivery of services and support to families within an organizational or governmental context.

Come Out

The act of disclosing one's LGBTQ+ identity to others.

Multi-problem Families

Families facing a combination of challenges such as health issues, financial struggles, and relationship conflicts simultaneously.

Lesbian and Gay

Terms used to describe individuals who are attracted to people of the same sex; often included in the broader LGBTQ+ community.