Suppose the Economy Is in Long-Run Equilibrium

question 55

Multiple Choice

Suppose the economy is in long-run equilibrium.If there is an increase in the supply of labor as well as an increase in the money supply,then we would expect that 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:

Mental Image

A representation in a person's mind of the physical world outside of themselves, which can be created from sensory experiences or imagination.

Forbidden Food

Foods that are prohibited from consumption due to cultural, dietary, or health-related reasons.

Anxiety Hierarchy

A list of situations or stimuli arranged in order of increasing ability to produce anxiety, used in desensitization therapies.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxieties through gradual exposure to the feared object or situation, coupled with relaxation training.