Suppose the Economy Is in Long-Run Equilibrium

question 21

Multiple Choice

Suppose the economy is in long-run equilibrium.If there is an increase in government purchases at the same time there is a large increase in the price of oil,then 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.

Distinguish between wealth and income and their implications for social status.

Reflect on the impacts of social stratification on societal dynamics and individual life chances.

Understand the role of banks in the money supply process.

Comprehend how the Federal Reserve utilizes monetary policy tools to influence the economy.

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Definitions:

Correlate

To possess a reciprocal relationship or link, where one entity influences or is contingent upon another.

Conscientiousness

A character quality marked by being well-organized, reliable, and having a profound dedication to responsibility.

Self-Discipline

The capability to manage one's emotions and conquer personal shortcomings, as well as the strength to follow what one believes is correct, even when faced with temptations to give it up.

Conscientiousness

is a personality trait characterized by thoroughness, diligence, and the desire to do a task well.