Multiple Choice
Suppose the economy is in long-run equilibrium. Concerns about pollution cause the government to significantly restrict the production of electricity. At the same time, the value of the dollar falls. 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.
Correct Answer:
Verified
Correct Answer:
Verified
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