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| Please help: Economics mult choice?
The economy is in Long-run equilibrium when the gov't decides to sigificantly increase spending on transportation infrastructure, which will lower the shipping costs for many businesses. We expect in the Short-run: a) real GDP to increase, price level to fall, Long Run: no effect b) real GDP to increase, price level to fall, Long Run: real GDP to increase, price level is ambiguous c) real GDP to increase, price level is ambiguous, Long Run: real GDP to increase, price level is ambiguous d) real GDP to increase, price level is ambiguous, Long Run: price level to increase, real GDP is ambiguous I don't think it's D because the answer was messed up in typing on the paper..., but other than that, i have no idea how to do this can you tell me the answer and *how* you got it? thanks!! |
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