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 an increase in 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
Q21: The long-run aggregate supply curve is vertical
Q33: An economy adjust on its own to
Q34: Suppose the economy is initially in long-run
Q35: In the long run, an increase in
Q42: As an inflationary gap is eliminated through
Q69: Which of the following is an explanation
Q70: Inflationary and recessionary gaps are always eliminated
Q120: When the Great Depression reached its trough
Q128: A change in the aggregate quantities of
Q163: Figure 7-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Figure 7-1