Suppose the Economy Is in Long-Run Equilibrium

question 463

Multiple Choice

Suppose the economy is in long-run equilibrium. If there is a tax cut at the same time that major new sources of oil are discovered in the country, 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.

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Definitions:

Supplemental Oxygen

Additional oxygen provided to patients to ensure adequate blood oxygen levels, often used in cases of respiratory distress or chronic lung conditions.

Scale Variations

Differences and changes in measurement or size, often relating to the quantitative assessment of objects, phenomena, or systems.

Weight Measurements

The quantitative assessment of body mass using scales or other devices, important for health monitoring and management.

Infant

A very young child or baby, typically under one year of age.