Suppose the Economy Is in Long-Run Equilibrium

question 88

Multiple Choice

Suppose the economy is in long-run equilibrium.In a short span of time,there is a sharp rise in the stock market,an increase in government purchases,an increase in the money supply and a decline in the value of the dollar.In the short run

• A)the price level and real GDP will both rise.
• B)the price level and real GDP will both fall.
• C)neither the price leave nor real GDP will change.
• D)All of the above are possible.

---

Definitions:

Canadian Provinces

Administrative divisions within Canada, consisting of 10 regions, each with its own government and responsibilities like healthcare and education.

Advanced Industrial Societies

Societies characterized by highly developed industries, technology, and complex social structures, often with significant economic and political influence.

Manufacturing Products

Involves the process of producing goods on a large scale using machinery, which encompasses everything from ideation to completion.

Post-structuralist

A theoretical framework in humanities and social sciences which questions the idea of fixed, universal structures and emphasizes the complexity and variability of social phenomena.