Suppose the Economy Is in Long-Run Equilibrium

question 41

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, a major new discovery of oil, a large influx of immigrants, and new environmental regulations that raise the cost of electricity production. In the short run

• A)the price level will rise and real GDP will fall.
• B)the price level will fall and real GDP will rise.
• C)the price level and real GDP will both stay the same.
• D)All of the above are possible.

---

Definitions:

Gonads

The reproductive organs in animals and humans that produce gametes; in males, the testes and in females, the ovaries.

Gender Schema

A cognitive theory that explains how individuals become gendered in society and how sex-linked characteristics are maintained and transmitted to other members of a culture.

Gender Identity

An individual's personal sense of their own gender, which may or may not align with the sex they were assigned at birth.

Assigned Gender

The gender designation given to an individual at birth, often based on physical anatomy, which may or may not align with the individual's gender identity.