Multiple Choice
Suppose the economy is in long-run equilibrium. In a short span of time, there is a sharp increase in the minimum wage. In the short run, what would we expect to happen?
A) the price level to rise, and real GDP to fall
B) the price level to fall, and real GDP to remain unchanged
C) the price level to remain unchanged, and real GDP to fall
D) the price level to fall, and the real GDP to rise the same
Correct Answer:
Verified
Correct Answer:
Verified
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