Suppose the economy is initially in long-run equilibrium.Which of the following events leads to a decrease in the price level and an increase in real GDP in the short run?
A) a decrease in health insurance premiums paid by firms raises the cost of employing labor
B) an increase in government transfer payments
C) an increase in the cost of a key input such as oil
D) a sharp fall in stock market prices
Correct Answer:
Verified
Q83: Which of the following is a source
Q83: All of the following contributed to the
Q85: The sticky price explanation of the short-run
Q89: An economy adjust on its own to
Q93: Suppose the economy is initially in long-run
Q98: The short-run aggregate supply curve slopes upward
Q102: During the recession of 2001, the leftward
Q114: The strong dollar in 2001
A) made U.S.
Q134: To eliminate a recessionary gap, policy-makers may
Q136: As a recessionary gap is eliminated through
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