Suppose the Economy Is in Long-Run Equilibrium

question 220

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, what would we expect will 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:

HR Forecasting

The process used by human resources to estimate the future demand and supply of employees needed to achieve the company's objectives.

Human Resources

The department within an organization responsible for hiring, administering benefits, and managing employee relations.

Personnel Planning

The process of determining an organization's future personnel needs and developing strategies to meet those needs.

Business Goals

Specific objectives that an organization or business aims to achieve over a certain period to ensure growth, profitability, and sustainability.