Suppose the Economy Is in Long-Run Equilibrium

question 454

Multiple Choice

Suppose the economy is in long-run equilibrium. If there is a sharp decline in the stock market combined with a significant increase in immigration of skilled workers, then in the short run,

• A)real GDP will rise and the price level might rise, fall, or stay the same. In the long-run, real GDP will rise and the price level might rise, fall, or stay the same.
• B)the price level will fall, and real GDP might rise, fall, or stay the same. In the long-run, real GDP and the price level will be unaffected.
• C)the price level will rise, and real GDP might rise, fall, or stay the same. In the long run, real GDP will rise and the price level will fall.
• D)the price level will fall, and real GDP might rise, fall, or stay the same. In the long run, real GDP will rise and the price level will fall.

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Definitions:

Corporate Assets

Property, both tangible and intangible, owned by a corporation and used in its operations to generate revenue.

Creditors

Individuals or entities that are owed money by debtors, usually arising from contractual agreements, and have the legal right to pursue payment.

Corporate Name

The legal name under which a corporation is registered to conduct business.

Articles Of Incorporation

Official papers submitted to a government agency to formally register the establishment of a corporation.