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Suppose the Economy Is in Long-Run Equilibrium When the Price

Question 27

Multiple Choice

Suppose the economy is in long-run equilibrium when the price of oil rises. Which one of the following is not a short-run effect of this situation?


A) an increase in real GDP above long-run real GDP
B) an increase in the price level
C) a decrease in real GDP
D) an increase in unemployment
E) a decrease in consumer spending

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