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:

Original Loan

The initial amount of money borrowed before any interest or fees are added.

Repaid

The action of paying back borrowed money to the lender.

Focal Date

A specific date of interest or importance within a plan, study, or project that serves as a central point of reference.

Economically Equivalent

A term used to describe two or more scenarios that have the same economic impact or value, despite being different in form or structure.