Part I: multiple choice: 8 mc questions here 1. Suppose the economy is in long-run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in pessimism about future business conditions, what would we expect to happen in the short run? a. Real GDP will rise, and the price level might rise, fall, or stay the same. b. Real GDP will fall, and the price level might rise, fall, or stay the same. c. The price level will rise, and real GDP might rise, fall, or stay the same. d. The price level will fall, and real GDP might rise, fall, or stay the same