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.

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Definitions:

Emotion-Focused Coping

A coping mechanism where individuals reduce stress by managing the emotions that the stressor has caused rather than confronting the root problem directly.

Three-Dimensional Scheduling

A method of planning that incorporates not only the sequence and duration of tasks but also considers their spatial arrangement or allocation of resources in three dimensions.

Type B Behavior

A personality type characterized by a relaxed, non-competitive, and less stress-prone pattern of behavior.

Competitiveness

The inclination to strive for success or superiority over others in scenarios that involve a comparison of performance.