Suppose the Economy Is in Long-Run Equilibrium

question 14

Multiple Choice

Suppose the economy is in long-run equilibrium. In a short span of time, there is a large influx of skilled immigrants, a major new discovery of oil, and a major new technological advance in electricity production. In the short run, we would expect

• A) the price level to rise and real GDP to fall.
• B) the price level to fall and real GDP to rise.
• C) the price level and real GDP both to stay the same.
• D) All of the above are possible.

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Definitions:

Rheumatoid Arthritis

A chronic inflammatory disorder affecting joints, including those in the hands and feet, characterized by painful swelling.

Suicidal Thoughts

Thoughts about considering, planning, or attempting suicide, reflecting a critical mental health condition that necessitates immediate intervention.

Constant Pain

Persistent pain that continues for long periods, often without clear cause or relief.

Central Nervous

Referring to the central nervous system, which includes the brain and spinal cord, responsible for processing and sending out signals.