Multiple Choice
The Stock Market Boom of 2010
Imagine that in 2010 the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some time.
-Refer to Stock Market Boom 2010.In the short run what happens to the price level and real GDP?
A) both the price level and real GDP rise.
B) both the price level and real GDP fall.
C) the price level rises and real GDP falls.
D) the price level falls and real GDP rises.
Correct Answer:
Verified
Correct Answer:
Verified
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