Starting from the short-run equilibrium, the following occurs: wage rates rise. What will be the effect on the Real GDP, price level, and unemployment rate in short- run? A) Real GDP falls, price level rises, and unemployment falls, B) Real GDP rises, price level falls, and unemployment falls, C) Real GDP rises, price level falls, and unemployment falls, D) Real GDP falls, price level rises, and unemployment rises. Starting from the short-run equilibrium, the following occurs: interest rate decreases. What will be the effect on the Real GDP, price level and unemployment in the short-run? A) Real GDP rises, price level falls, and unemployment rises, B) Real GDP rises, price level rises, and unemployment falls, C) Real GDP falls, the price level falls, and unemployment rises, D) Real GDP falls, price level rises, and unemployment rises. The increase in taxes enacted in the early 1990 s to eliminate the U.S. budget deficit most likely: A) shifted the AD curve to the left. B) shifted the AD curve to the right. C) made the AD curve flatter. D) made the AD curve steeper.