Suppose the economy is initially in long run equilibrium. Which of the following lead to an increase in price level and a decrease in real GDP in the short run?
A. decrease in health insurance premiums paid by firms raises the cost of employing labor
B. increase in govt transfer payments
C. increase in the cost of a key input like oil
D. sharp fall in stock market prices
Ans: D. sharp fall in stock market prices
Economics
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A) durable B) a security C) a liability D) a commodity
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Which of the following is NOT a focus of the study of economics?
A) how individual preferences are formed B) unemployment C) inflation D) prices in particular markets
Economics