Suppose the Economy Is in Long-Run Equilibrium

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, a major new discovery of oil, a large influx of immigrants, and new environmental regulations that raise the cost of electricity production. In the short run

A) the price level will rise and real GDP will fall.
B) the price level will fall and real GDP will rise.
C) the price level and real GDP will both stay the same.
D) All of the above are possible.