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. What would we expect to happen in the short run?
a. The price level will rise, and real GDP might rise, fall, or stay the same.
b. The price level will fall, and real GDP might rise, fall, or stay the same.
c. Real GDP will rise, and the price level might rise, fall, or stay the same.
d. Real GDP will fall, and the price level might rise, fall, or stay the same.

Question

07-07-2021
Business

Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Our platform provides a seamless experience for finding reliable answers from a knowledgeable network of professionals. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

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. What would we expect to happen in the short run?
a. The price level will rise, and real GDP might rise, fall, or stay the same.
b. The price level will fall, and real GDP might rise, fall, or stay the same.
c. Real GDP will rise, and the price level might rise, fall, or stay the same.
d. Real GDP will fall, and the price level might rise, fall, or stay the same.

Sagot :

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.

Ellaused 1/4 yard of red ribbon. Fill in each box with a number from the list to show equivalent fraction from 1/4. The numbers are 2. 3. 5. 6.12. 16. 20

Who was William the Conqueror? A. the head of the army that defended England against the Norman invasion B. the king who saved France from conquest by the Engli

Which expression is equivalent to this one? –5(6 + 11) A. (–5) • 6 + 11 B. (–5) + 6 + 11 C. (–5) • 6 • 11 D. (–5) • 6 + (–5) • 11

COMPLETE EACH PATTERN. 1/3,2/6,3/9,4/ 1/2,2/4,3/6,4/8,5/ ,6/

What political tactic led the candidate to victory in the 1896 presidential election? a) debates b) advertisement c) slander d) pay-offs

what are 7 elements from the periodic table that are named after objects in outer space

Which correctly describes the net of a square

1.) How are Hindu and Buddhist beliefs similar? a.) Nirvana is a Buddhist belief in freeing the soul from the cycle of reincarnation, which is a Hindu belief

Which emotional force played a large role in the unification of Italy and Germany? A. expressionism B. pacifism C. dualism D. nationalism

Before World War II, many African countries were ruled by a handful of European nations. How did many of the colonies achieve independence in the decades follow

Martebi Martebi · Answer 1 · 2021-07-09T20:37:45-04:00

Answer:

the price level will rise, and real GDP might rise, fall, or stay the same.

Explanation:

Short run

In microeconomics, it is simply defined as the timeframe when all resource prices (including wages) are constant not changing.

Long run

This is also known as the period of time when all resource prices (including wages) change/is altered or do not remain the same.

Long-run equilibrium can change with constant long run aggregate supply (LRAS) and potential output thereby leading to changes only in the price level and this can cause inflation. Due to the changing LRAS, causing an increase in potential output leading to economic growth or decreasing potential output leading to negative growth.

Sagot :

Other Questions