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Figure 8-5 Panel (A) Shows an Economy's Aggregate Production

Question 73

Multiple Choice

Figure 8-5 Figure 8-5 Panel (a) shows an economy's aggregate production function, Panel (b) shows the labor market and Panel (c) shows the economy's long-run aggregate supply curve. -Refer to Figure 8-5. An upward shift of the aggregate production function would lead to A) a decrease in the real wage and to a decrease in real GDP. B) an increase in the real wage and to a decrease in real GDP. C) a decrease in the real wage and to an increase in real GDP. D) an increase in the real wage and to an increase in real GDP. Panel (a) shows an economy's aggregate production function, Panel (b) shows the labor market and Panel (c) shows the economy's long-run aggregate supply curve.
-Refer to Figure 8-5. An upward shift of the aggregate production function would lead to


A) a decrease in the real wage and to a decrease in real GDP.
B) an increase in the real wage and to a decrease in real GDP.
C) a decrease in the real wage and to an increase in real GDP.
D) an increase in the real wage and to an increase in real GDP.

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