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If an economy is initially in long-run equilibrium and then experiences a negative demand shock, what will happen to wages, the aggregate price level, and real GDP in the long run? * Wages INCREASE, Price Level INCREASE, Real GDP NO CHANGE Wages INCREASE, Price Level INCREASE, Real GDP INCREASE O Wages DECREASE, Price Level DECREASE, Real GDP NO CHANGE O Wages DECREASE, Price Level INCREASE, Real GDP DECREASE O Wages DECREASE, Price Level DECREASE, Real GDP DECREASE

If an economy is initially in long-run equilibrium and then experiences a negative demand shock, what will happen to wages, the aggregate price level, and real GDP in the long run? * Wages INCREASE, Price Level INCREASE, Real GDP NO CHANGE Wages INCREASE, Price Level INCREASE, Real GDP INCREASE O Wages DECREASE, Price Level DECREASE, Real GDP NO CHANGE O Wages DECREASE, Price Level INCREASE, Real GDP DECREASE O Wages DECREASE, Price Level DECREASE, Real GDP DECREASE

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 6QR
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If an economy is initially in long-run equilibrium and then experiences a negative demand shock, what will happen to wages, the aggregate price level, and real GDP in the long run? * Wages INCREASE, Price Level INCREASE, Real GDP NO CHANGE Wages INCREASE, Price Level INCREASE, Real GDP INCREASE O Wages DECREASE, Price Level DECREASE, Real GDP NO CHANGE Wages DECREASE, Price Level INCREASE, Real GDP DECREASE Wages DECREASE, Price Level DECREASE, Real GDP DECREASE
Transcribed Image Text:If an economy is initially in long-run equilibrium and then experiences a negative demand shock, what will happen to wages, the aggregate price level, and real GDP in the long run? * Wages INCREASE, Price Level INCREASE, Real GDP NO CHANGE Wages INCREASE, Price Level INCREASE, Real GDP INCREASE O Wages DECREASE, Price Level DECREASE, Real GDP NO CHANGE Wages DECREASE, Price Level INCREASE, Real GDP DECREASE Wages DECREASE, Price Level DECREASE, Real GDP DECREASE
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