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:

Leukemia

A type of cancer that affects the blood and bone marrow, characterized by an overproduction of abnormal white blood cells.

Viral Infections

Diseases caused by viruses, microscopic infectious agents that can replicate only inside the living cells of an organism.

Oxygen Transport

The process by which oxygen is carried throughout the body, primarily by red blood cells, to maintain cellular respiration.

Carbon Dioxide

A gas that lacks both color and odor, resulting from the combustion of carbon-based substances and the respiration process, and is utilized by plants for photosynthesis.