aggregate demand will increase and real GDP wil increase in the short run. aggregate supply will decrease and real GDP will increase in the short run. aggregate supply will decrease and real GDP ill decrease in the short run. O aggregate demand will decrease and real GDP will increase in the short run.

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Rolse And Effects Of Government
Section: Chapter Questions
Problem 2WNG
icon
Related questions
Question

Pls select correct option and explain it.

Suppose an economy is in long-run equilibrium when the price of imported resources increase. As a result
Multiple Choice
aggregate demand will increase and real GDP will increase in the short run.
aggregate supply will decrease and real GDP will increase in the short run.
aggregate supply will decrease and real GDP will decrease in the short run.
aggregate demand will decrease and real GDP will increase in the short run.
Transcribed Image Text:Suppose an economy is in long-run equilibrium when the price of imported resources increase. As a result Multiple Choice aggregate demand will increase and real GDP will increase in the short run. aggregate supply will decrease and real GDP will increase in the short run. aggregate supply will decrease and real GDP will decrease in the short run. aggregate demand will decrease and real GDP will increase in the short run.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Arrow's Impossibility Theorem
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Macroeconomics
Macroeconomics
Economics
ISBN:
9781337617390
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
Economics
ISBN:
9781337613057
Author:
Tucker
Publisher:
CENGAGE L