Ask Question
BusinessBusiness
2 December, 22:23

Optimism imagine that the economy is in long-run equilibrium. then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time. refer to optimism. in the short run what happens to the price level and real gdp?

a. the price level falls and real gdp rises.

b. the price level rises and real gdp falls.

c. both the price level and real gdp fall.

d. both the price level and real gdp rise.

+4
Answers (1)
  1. 2 December, 22:43
    0
    Under economic conditions where people are optimistic about the stability and equilibrium of the economy, price levels are likely to rise and GDP is likely to rise similarly. Confidence and optimism about future economic stability would allow consumers to buy good with confidence and for growth in price level and growth in real GDP to take place gradually and continually.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Optimism imagine that the economy is in long-run equilibrium. then, perhaps because of improved international relations and increased ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Curtis is considering buying a new workout machine that promises weight loss at twice the rate of other machines.
Answers (1)
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During the year, the company reported total revenues of $226,000 and expenses of $175,000.
Answers (1)
To produce honey, beekeepers place hives of bees in the fields of farmers. As bees gather nectar, they pollinate the crops in the fields, which increases the yields of these fields at no additional cost to the farmer.
Answers (1)
A mortgage is a legal agreement between a borrower and a
Answers (1)
Suppose the Fed purchases $100 million of U. S. securities from security dealers. If the reserve requirement is 20 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction,
Answers (1)
New Questions in Business
One of the most important ingredients in bubble tea is the tapioca pearls that are added to the tea. If the price of tapioca flour increases, what will happen to the supply of bubble tea, all else being equal?
Answers (1)
If you put all the profits into your business, you may not be able to do which of the following? A: hire an accountant B: fund your IRA C:pay for your marketing D:develop new products
Answers (1)
Henry Sweet Co. currently makes 6" candy sticks that it sells for $0.20 each. Henry can make 12" candy sticks out of two 6" candy sticks by melting them together, which costs an additional $0.03 per 12" stick. Henry can sell the 12" sticks for $0.45.
Answers (1)
The customer relationship management process involves all the activities related to receiving and approving orders, shipping the goods on time, and collecting payment. Group of answer choices True False
No Answers
Explain, in your own words and step-by-step, what happens to wastewater once it reaches the treatment plant. (6 steps)
Answers (1)
Home » Business » Optimism imagine that the economy is in long-run equilibrium. then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.
Sign Up Forgot Password?