Starting from Short-Run Equilibrium,wage Rates Rise

question 104

Multiple Choice

Starting from short-run equilibrium,wage rates rise.What is the effect on the price level and Real GDP in the short run?

• A) The price level rises and Real GDP falls.
• B) The price level falls and Real GDP rises.
• C) The price level rises and Real GDP rises.
• D) The price level falls Real GDP falls.

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