Suppose the Economy Is in Long-Run Equilibrium

question 199

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 we would expect that in the short-run,

• A)real GDP will rise and the price level might rise, fall, or stay the same.
• B)real GDP will fall and the price level might rise, fall, or stay the same.
• C)the price level will rise, and real GDP might rise, fall, or stay the same.
• D)the price level will fall, and real GDP might rise, fall, or stay the same.

Understand the concept of the aggregate demand curve and its downward slope due to various effects.

Understand the concept and impact of the hedonic treadmill on individuals' happiness levels.

Grasp the importance of positive psychology and practices that increase happiness.

Identify the role of emotions and emotional expressions in individual well-being.

---

Definitions:

Opportunities

Circumstances or situations that present a possibility for advancement, improvement, or success.

Threats

Potential sources of harm or adverse effects that could cause damage or jeopardize a particular outcome or objective.

Soft Skills

Interpersonal attributes and personality traits that enhance an individual's interactions, job performance, and career prospects, including communication, teamwork, and problem-solving skills.

People Skills

The range of interpersonal and communication skills that enable individuals to work effectively with others, manage conflicts, and build positive relationships.