-The data in the above table show that when the price level is 120, if aggregate demand does not change then the
A) money wage rate will fall in the future.
B) long- run aggregate supply curve will shift leftward.
C) short- run aggregate supply curve will shift leftward.
D) money wage rate will rise in the future.

Question

-The data in the above table show that when the price level is 120, if aggregate demand does not change then the
A) money wage rate will fall in the future. 
B) long- run aggregate supply curve will shift leftward. 
C) short- run aggregate supply curve will shift leftward. 
D) money wage rate will rise in the future.

Quizplus · Accepted Answer

When the price level is 120, the economy is above the long-run aggregate supply curve. In the long run, the economy will move back to the long-run aggregate supply curve, which will cause the money wage rate to fall.

-The Data in the Above Table Show That When the Price