In the above figure, what are the long-run equilibrium price level and real GDP?

A backward-bending labor supply curve could possibly imply which of the following cases?

A) Leisure is an inferior good. B) Leisure is a normal good. C) Leisure is a normal good at low wages and inferior at high wages. D) None of the above.

When studying the effects of public policy changes, economists

a. always refrain from making assumptions. b. sometimes make different assumptions about the short run and the long run. c. consider only the direct effects of those policy changes and not the indirect effects. d. consider only the short-run effects of those policy changes and not the long-run effects.