Solved

Suppose the Economy Is in Long-Run Equilibrium

Question 21

Multiple Choice

Suppose the economy is in long-run equilibrium.If there is an increase in government purchases at the same time there is a large increase in the price of oil,then 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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions