A) nominal wages and other input prices are assumed to be ?xed.
B) $\text { real output level } Q _ { f } \text { is the potential level of output. }$
C) price level increases produce perfectly offsetting changes in nominal wages and other input prices.
D) higher-than-expected rates of actual in?ation reduce real output only temporarily.

Question

A) nominal wages and other input prices are assumed to be ?xed. 
B) $\text { real output level } Q _ { f } \text { is the potential level of output. }$ 
C) price level increases produce perfectly offsetting changes in nominal wages and other input prices. 
D) higher-than-expected rates of actual in?ation reduce real output only temporarily.

Quizplus · Accepted Answer

The Answer of 
A) nominal wages and other input prices are assumed to be ?xed. 
B) $\text { real output level } Q _ { f } \text { is the potential level of output. }$ 
C) price level increases produce perfectly offsetting changes in nominal wages and other input prices. 
D) higher-than-expected rates of actual in?ation reduce real output only temporarily.

A) Nominal Wages and Other Input Prices Are Assumed to Be