Moving along the potential GDP line, when the price level changes, the
I. real wage rate stays at the full-employment equilibrium level.
Ii. money wage rate changes by the same percentage.
Iii. money prices of non-labor resources change by the same percentage.
A) iii only
B) i and ii
C) i only
D) i, ii, and iii
E) ii only
Correct Answer:
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Q1: The aggregate supply curve shifts rightward when
A)the
Q2: The aggregate demand curve shifts when any
Q4: Real GDP definitely increases if
A)potential GDP decreases
Q5: An increase in government expenditure on goods
Q6: Which of the following could result in
Q7: Changes in which of the following do
Q8: A decrease in foreign income-------------------- exports of
Q9: Moving along the aggregate supply curve, when
Q10: At a price level of 100, John
Q11: If demand pull inflation occurs when the
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