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

Economics

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The primary purpose of the FDIC is to reduce the potential for

A) reserve cheating. B) government regulations. C) excessive interest rates. D) bank runs.

Economics

Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point e,

A) his MRS is less than the trade-off offered by the market. B) he is willing to give up more burger than he has to, given market prices. C) he is not maximizing his utility. D) All of the above.

Economics