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 Financial Crisis.What happens to the price level and real GDP in the short run?
A) both the price level and real GDP rise
B) the price level rises and real GDP falls
C) the price level falls and real GDP rises
D) both the price level and real GDP fall
Correct Answer:
Verified
Correct Answer:
Verified
Q93: Pessimism<br>Suppose the economy is in long-run equilibrium.
Q94: In 1986,OPEC countries increased their production of
Q95: Figure 33-5. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 33-5.
Q96: When production costs rise,<br>A)the short-run aggregate supply
Q97: Consider the exhibit below for the following
Q99: Figure 33-5. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 33-5.
Q100: Figure 33-8. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 33-8.
Q101: Pessimism<br>Suppose the economy is in long-run equilibrium.
Q102: Pessimism<br>Suppose the economy is in long-run equilibrium.
Q103: Consider the exhibit below for the following