Suppose That a Short-Run Macroeconomic Equilibrium Occurs in the Upward-Sloping

Multiple Choice

Suppose that a short-run macroeconomic equilibrium occurs in the upward-sloping range of the short-run aggregate supply curve. From this point, the government cuts the personal income tax rate. Compared to what it was in the short run, the nominal wage in the long run will be ____, and the price level will be:

A) lower; lower.
B) higher; lower.
C) lower; higher.
D) higher; higher.