6. Suppose Canada's economy is in a long-run equilibrium with real GDP equal to potential output.Now suppose there is a decrease in the Canadian price of all imported raw materials. In the shortrun, ________. In the long run, ________.A) real GDP and the price level both fall; real GDP is below its original level with a lower price levelB) real GDP and the price level both rise; real GDP is above its original level with a higher price levelC) real GDP and the price level both rise; real GDP returns to its original level with a higher price levelD) real GDP rises and the price level falls; real GDP and the price level return to their original levelsE) real GDP falls and the price level rises; real GDP is below its original level with a higher price

A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run.Question 4Answera.real GDP; the price levelb.the price level; the price levelc.the price level; real GDPd.real GDP; real GDP

There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run.Question 6Answera.decrease; increase to its initial levelb.increase; increases furtherc.decrease; decrease furtherd.increase; decrease to its initial value

3. If the short-run macroeconomic equilibrium occurs with real GDP less than Y*, the economy isA) at its full-employment level of output.B) experiencing a recessionary gap.C) experiencing an inationary gap.D) threatened with an acceleration of ination.E) operating at full [email protected]

The economy is initially at its long-run equilibrium. A diplomatic dispute with its trading partner countries now leads to a decline in its exports. In the short run, the aggregate demand curve shifts left. In the long run, the price level decreases, the output returns to its potential, and real wages decrease. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages do not change. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages increase. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages decrease. In the short run, the aggregate demand curve shifts left. In the long run, the price level decreases, the output returns to its potential, and real wages do not change.

A decrease in the price level results in a(n) ________ in the quantity of real GDP demanded because a lower price level ________ consumption, investment, and net exports.Question 9Answera.decrease; decreasesb.decrease; increasesc.increase; increasesd.increase; decreases