The money wage rate is constant when moving along
A)only the aggregate supply curve and the potential GDP line.
B)only the potential GDP line.
C)the aggregate supply curve, the potential GDP line, and the aggregate demand curve.
D)only the aggregate supply curve.
E)neither the aggregate supply curve nor the potential GDP line.

Question

Quizplus · Accepted Answer

The money wage rate is constant when moving along the aggregate supply curve because it represents the relationship between the price level and the quantity of goods and services that firms are willing to supply, assuming constant wages.

The Money Wage Rate Is Constant When Moving Along