Which of the following is NOT part of the short- run macroeconomic adjustment to equilibrium when the price level is greater than the equilibrium price level?
A) There is a decrease in the money wage rate.
B) There are decreases in production and prices.
C) The quantity of real GDP demanded is less than the quantity of real GDP supplied.
D) There are unexpected increases in business inventories.

Question

Quizplus · Accepted Answer

In the short run, when the price level is greater than the equilibrium price level, wages are typically sticky and do not decrease immediately. Instead, adjustments occur through changes in production, prices, and inventories.

Which of the Following Is NOT Part of the Short-