Suppose That the Economy Is at Long-Run Equilibrium

question 60

Multiple Choice

Suppose that the economy is at long-run equilibrium.If there is a sharp rise in the stock market combined with a significant increase in the minimum wage,then 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.

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Definitions:

The Two-Step Flow Model

A communication theory suggesting that information from the media moves to opinion leaders and then to a wider audience.

Influencers

People who can influence others' buying choices due to their expertise, status, authority, or personal connection with their audience.

Dissemination

The process of spreading information, knowledge, or ideas to a wide audience.

Sticky

Describes content, websites, or applications that engage users and encourage them to spend more time interacting with them.