Economics

posted by .

3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run?

a.Real GDP will fall, the unemployment rate will rise, and the price level will rise.
b.Real GDP will rise, the unemployment rate will fall, and the effect on the price level cannot be determined.
c.Real GDP will rise, the unemployment rate will fall, and the price level will fall.
d. Real GDP will fall, the unemployment rate will rise, and the effect on the price level cannot be determined.
e. Real GDP will rise, the unemployment rate will rise, and the price level will rise.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    The Fed conducts an open market purchase of securities. Explain the effects of this action in the short run and the long run on: a)The quantity of money b)The quantity of money demanded c)The nominal interest rate d)The real interest …
  2. Economics

    1. Suppose there is a stock market crash in Japan. Using a well-labeled graph show the effect in the short run on the equilibrium price level in the U.S.A., equilibrium Real GDP in the Unites States of America, equilibrium unemployment …
  3. Economics

    3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run?
  4. Economics

    3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run?
  5. Economics

    Consider an economy with the following aggregate demand(AD) and aggregate supply(AS) schedules. These schedules reflect the fact that, prior to the period we're examining, decisions makers entered into contracts and made choices anticipating …
  6. economics

    I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  7. Econ

    I am completely stuck on these three questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  8. economics

    I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  9. economics

    am completely stuck on these three questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  10. Economics: Am I right?

    I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …

More Similar Questions