Suppose a booming stock market encourages consumption spending to rise dramatically. What would be the most likely long-run impact?
A) Prices would fall.
B) GDP first rises, and then falls back to long-run equilibrium.
C) A recession occurs.
D) The impact cannot be determined from the information given.
Correct Answer:
Verified
Q61: The Great Depression was primarily the result
Q156: Which of the following will shift the
Q157: In the short run, a decrease in
Q158: Which of the following will shift the
Q159: If a pill is discovered that allows
Q160: Which of the following will NOT shift
Q161: The proportion of additional income that consumers
Q162: (Figure: Understanding Aggregate Graphs 2) 
Q163: (Figure: Shifting SRAS and AD)
Q164: (Figure: Determining Aggregate Equilibrium Levels)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents