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 production. Group of answer choices real GDP rises, price level rises real GDP rises, price level falls real GDP falls, price level rises real GDP falls, price level falls
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 production. Group of answer choices real GDP rises, price level rises real GDP rises, price level falls real GDP falls, price level rises real GDP falls, price level falls
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.2P
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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 production.
Group of answer choices
real GDP rises,
real GDP rises, price level falls
real GDP falls, price level rises
real GDP falls, price level falls
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