Long-run: Assume you are examining the economy of India. Assume the Indian economy is initially in equilibrium. Suppose a war breaks out between India and neighboring Pakistan. What happens to Indian equilibrium if
Long-run: Assume you are examining the economy of India. Assume the Indian economy is initially in equilibrium. Suppose a war breaks out between India and neighboring Pakistan. What happens to Indian equilibrium if
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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![Long-run:
Assume you are examining the economy of
India. Assume the Indian economy is initially
in equilibrium. Suppose a war breaks out
between India and neighboring Pakistan.
What happens to Indian equilibrium if
500,000 Pakistanis immigrate to India in
the span of a year? Analyze this strictly in
the context of expenditure.
Group of answer choices
real GDP rises, price level rises
real GDP rises, price level falls
real GDP remains unchanged, price level
rises
real GDP remains unchanged, price level
falls](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F94bf0466-b8b1-4bdf-b01b-7170cf4170e9%2Fc8b042f9-adae-4f9e-9e3b-4adbdeea1560%2Fbkp1myb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Long-run:
Assume you are examining the economy of
India. Assume the Indian economy is initially
in equilibrium. Suppose a war breaks out
between India and neighboring Pakistan.
What happens to Indian equilibrium if
500,000 Pakistanis immigrate to India in
the span of a year? Analyze this strictly in
the context of expenditure.
Group of answer choices
real GDP rises, price level rises
real GDP rises, price level falls
real GDP remains unchanged, price level
rises
real GDP remains unchanged, price level
falls
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