The Economy Is in Long-Run Equilibrium

question 177

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,we would expect that,in the short run,

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

Groups

Collections of individuals who interact with each other, share similar characteristics, and collectively have a sense of unity.

Attitudes

Psychological tendencies expressed by evaluating particular entities with some degree of favor or disfavor.

Academic Psychologists

Professionals who study, teach, and conduct research on various aspects of human behavior and mental processes within an academic setting.

Psychometrics

The field of study concerned with the theory and technique of psychological measurement, including the development of tests to assess personality, abilities, and attitudes.