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:

Fifteenth Amendment

An amendment to the United States Constitution that prohibits the federal and state governments from denying a citizen the right to vote based on that citizen's "race, color, or previous condition of servitude."

Ballot Boxes

Physical or electronic containers used to hold ballots during an election, ensuring the confidentiality and integrity of the voting process.

Radical Agrarian Movement

This refers to a group or movement advocating for drastic changes in agricultural practices, aiming at better conditions for farmers and equitable land distribution.

Populist Party

A political party in the United States in the late 19th century, also known as the People’s Party, that represented the interests of agrarian workers and pushed for reforms such as the direct election of senators and bimetallism.