Suppose the Economy Is in Long-Run Equilibrium

question 92

Multiple Choice

Suppose the economy is in long-run equilibrium. In a short span of time, there is a sharp increase in the minimum wage. In the short run, what would we expect to happen?

• A) the price level to rise, and real GDP to fall
• B) the price level to fall, and real GDP to remain unchanged
• C) the price level to remain unchanged, and real GDP to fall
• D) the price level to fall, and the real GDP to rise the same

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Definitions:

SQO Instruction

An operational code in programming used to control sequencing outputs in a predefined cyclic pattern.

Starting Address

The initial address in memory where a sequence of data or a program begins, essential for data retrieval and program execution.

Repeatable Operating Pattern

A consistent sequence of operations or actions that can be replicated with the same results each time.