Suppose the Economy Is in Long-Run Equilibrium

question 176

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 taxes, 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.

---

Definitions:

Breast Implants

Surgical procedures to enhance or reconstruct the size and shape of breasts, often involving the insertion of silicone or saline-filled devices.

Realistic Sexual Interactions

Sexual activities or portrayals that accurately reflect the complexity, consent, and communication present in real-life sexual experiences.

Deceptive Pricing

A misleading marketing practice where prices are presented in a way that may confuse or mislead consumers about the actual cost.

Consumer Goods Pricing Act

Legislation aimed at regulating the pricing of consumer goods to prevent unfair practices and protect consumers, although specific details can vary by jurisdiction.