Multiple Choice
Suppose the economy is in long-run equilibrium.In a short span of time,there is a sharp rise in the stock market,an increase in government purchases,an increase in the money supply and a decline in the value of the dollar.In the short run
A) the price level and real GDP will both rise.
B) the price level and real GDP will both fall.
C) neither the price leave nor real GDP will change.
D) All of the above are possible.
Correct Answer:

Verified
Correct Answer:
Verified
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