Suppose the Economy Is in Long-Run Equilibrium

question 184

Multiple Choice

Suppose the economy is in long-run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in pessimism about future business conditions, then in the short run, real GDP will

• A)rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.
• B)fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected.
• C)rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.
• D)fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.

Grasp the concept of a firm’s revenue, total economic costs, and factors affecting them.

Interpret scenarios to calculate economic and accounting profits, as well as economic costs.

Understand the concepts of ethnic enclaves and their significance in urban sociology.

Comprehend modern sociological theories and their criticisms regarding identity formation and societal engagement.

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Definitions:

Chlorofluorocarbon

A class of compounds used in refrigerants and aerosols, known for their role in ozone depletion.

Ozone Destroyer

Substances, typically man-made chemicals like CFCs, that lead to the depletion of the ozone layer in the Earth's stratosphere.

Deforestation

The large-scale removal of forest land or tree plantations, often resulting in damage to the quality of the land.

Soil Nutrient Loss

The depletion of essential minerals and compounds from soil, often due to factors like erosion, over-farming, or leaching, which can reduce soil fertility and agricultural productivity.