Suppose the Economy Is in Long-Run Equilibrium

question 140

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,what would we expect to happen 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.