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Starting from Short-Run Equilibrium,wage Rates Rise

Question 104

Multiple Choice

Starting from short-run equilibrium,wage rates rise.What is the effect on the price level and Real GDP in the short run?


A) The price level rises and Real GDP falls.
B) The price level falls and Real GDP rises.
C) The price level rises and Real GDP rises.
D) The price level falls Real GDP falls.

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