Moving along the short-run aggregate supply curve, ________.
A)real GDP equals potential GDP
B)real GDP equals nominal GDP
C)the real wage rate is constant
D)the money wage rate, the prices of other resources, and potential GDP remain constant

Question

Quizplus · Accepted Answer

In the short-run aggregate supply curve, the money wage rate, the prices of other resources, and potential GDP remain constant, allowing for movement along the curve as the price level changes.

Moving Along the Short-Run Aggregate Supply Curve, ________