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What would be the significance of such a characteristic

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Suppose nominal wages never changed. What would be the significance of such a characteristic?

Suppose the minimum wage were increased sharply. How would this affect the equilibrium price level and output level in the model of aggregate demand and aggregate supply in the short run? In the long run?

Explain the short-run impact of each of the following.

a. A discovery that makes cold fusion a reality, greatly reducing the cost of producing energy

b. An increase in the payroll tax

Reference no: EM132506591

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