this year a nations long run equilibrium real gdp and price level both increased
ID: 1096603 • Letter: T
Question
this year a nations long run equilibrium real gdp and price level both increased. which of the following combinations of factors might simultaneously account for both occurences?
a) An isolated earthquake at the beginning of the year destroyed part of the nations capital stock and the nations government significantly reduced its purchases of goods and services
b) there was a technological improvement at the end of the previous year and the quantity of money in circulation rose significantly during the year
c)labor productivity increased throughout the year and comsumers significantly increased their total planned purchases of goods and services
d) the capital stock increased somewhat during the year and the quantity of money in circulation declined considerably
Explanation / Answer
Correct answer is option C
c)labor productivity increased throughout the year and comsumers significantly increased their total planned purchases of goods and services
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