In the long run
a. both supply and demand shocks have permanent effects on real GDP.
b. real GDP can remain below potential.
c. real GDP can remain above potential.
d. both supply and demand shocks have no effect on real GDP.
e. supply shocks have permanent effects on real GDP but demand shocks have no effect.
D
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Refer to Figure 4-5. What area represents the deadweight loss after the imposition of the ceiling?
A) C + E + J + H B) C + E C) G + H D) J + H
Explain the dynamic rationale for economic integration among developing countries
What will be an ideal response?
Which of the following is true about transactional relationships?
a. They are cost driven and arm's length b. They are vital to profitability c. They need and expect efficient service d. They do not have resources to waste with inefficient transactions, processes, processes, or partners e. All of the above
Other things being equal, the longer a price change persists
A) the less is the elasticity of demand. B) the less chance a consumer will be able to adjust. C) the more the consumer will be willing to pay. D) the greater is the elasticity of demand.