Multiple Choice
Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.
-Refer to Stock Market Boom 2015.How is the new long-run equilibrium different from the original one?
A) the price level and real GDP are higher
B) the price level and real GDP are lower.
C) the price level is higher and real GDP is the same.
D) the price level is the same and real GDP is higher.
Correct Answer:
Verified
Correct Answer:
Verified
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