Multiple Choice
Suppose the economy is initially in long-run equilibrium. Which of the following events leads to a decrease in the price level and real GDP in the short run?
A) A decrease in health insurance premiums paid by firms raises the cost of employing labor
B) An increase in government transfer payments
C) An increase in the cost of a key input such as oil
D) A sharp fall in stock market prices
Correct Answer:
Verified
Correct Answer:
Verified
Q51: Use the following to answer questions .<br>Exhibit:
Q52: Use the following to answer questions .<br>Exhibit:
Q53: The potential level of real GDP is
Q54: An economic analysis of the short run
Q55: All else constant, a lower price level<br>A)
Q57: An increase in the prices of natural
Q58: Use the following to answer questions .<br>Exhibit:
Q59: Which of the following best explains why
Q60: An economy adjusts on its own to
Q61: Suppose that government spending on defense rises