Suppose Canada's Economy Is in a Long-Run Equilibrium with Real

question 15

Multiple Choice

Suppose Canada's economy is in a long-run equilibrium with real GDP equal to potential output.Now suppose there is an increase in world demand for Canada's goods.In the short run,________.In the long run,________.

• A)real GDP and the price level both fall; real GDP is below its original level with a lower price level
• B)real GDP and the price level both rise; real GDP is above its original level with a higher price level
• C)real GDP and the price level both rise; real GDP returns to its original level with a higher price level
• D)real GDP rises and the price level falls; real GDP returns to its original level with a lower price level
• E)real GDP falls and the price level rises; real GDP is below its original level with a higher price level

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Definitions:

Formal Work Environment

an organizational setting that strictly adheres to a set of established protocols, rules, and hierarchies.

Health Problems

Issues or conditions that negatively affect an individual's physical or mental well-being.

Sloppy Work

Careless or improperly performed tasks or duties, often leading to errors or unsatisfactory outcomes.

Litigation Department

A specialized section within a law firm or corporation that focuses on managing lawsuits and legal disputes.