In the accompanying graphs, Q $$Q _ { P }$$ refers to the economy's potential output level. Graph A is
Constructed on the basic assumption that
A) the price level is not ?exible.
B) nominal wages are unresponsive to price-level changes.
C) real output is unresponsive to price-level changes.
D) unemployment is unresponsive to price-level changes.

Question

In the accompanying graphs, Q $$Q _ { P }$$ refers to the economy's potential output level. Graph A is
Constructed on the basic assumption that
A) the price level is not ?exible. 
B) nominal wages are unresponsive to price-level changes. 
C) real output is unresponsive to price-level changes. 
D) unemployment is unresponsive to price-level changes.

Quizplus · Accepted Answer

The Answer of  In the accompanying graphs, Q $$Q _ { P }$$ refers to the economy's potential output level. Graph A is
Constructed on the basic assumption that
A) the price level is not ?exible. 
B) nominal wages are unresponsive to price-level changes. 
C) real output is unresponsive to price-level changes. 
D) unemployment is unresponsive to price-level changes.

In the Accompanying Graphs, Q QPQ _ { P }QP​ Refers to the Economy's Potential Output Level

In the Accompanying Graphs, Q $Q _ { P }$ Refers to the Economy's Potential Output Level