Suppose the Economy Is in Long-Run Equilibrium

question 19

Multiple Choice

Suppose the economy is in long-run equilibrium.Concerns about pollution cause the government to significantly restrict the production of electricity.At the same time,taxes fall.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:

Alarm Calls

Vocal sounds made by animals to warn others in the group of impending danger, a component of social communication among many species.

Potential Threats

Possible sources of danger or harm that could lead to negative outcomes if not recognized, avoided, or addressed properly.

Polygynous

A mating system in which a male has more than one female partner at the same time.

Multiple Mates

A reproductive strategy where an individual has sexual relationships with more than one partner over a period of time.