Depreciation is the term used when plants, equipment and housing deteriorate and wear out, thus losing their original values

Suppose that the economy is at long-run equilibrium. If there is a sharp decline in the stock market combined with a significant increase in immigration of skilled workers, then in the short run

a) the price level will fall, and real GDP will fall. b) real GDP will fall and the price level might rise, fall, or stay the same. c) real GDP will rise and the price level might rise, fall, or stay the same. d) the price level will fall, and real GDP might rise, fall, or stay the same. e) the price level will rise, and real GDP might rise, fall, or stay the same.

When a nation experiences economic growth:

A) its production possibilities curve shifts outward. B) its production possibilities curve shifts inward. C) it has been able to reach full employment. D) it has moved to a more consumer-oriented position on its production possibilities curve.