If the price level falls and the money wage rate does not change, some firms ________ and there is ________.
A) shut down; a leftward shift of the aggregate supply curve
B) shut down; a decrease in potential GDP
C) start up; a rightward shift of the aggregate supply curve
D) shut down; a decrease in the quantity of real GDP supplied
E) start up; an increase in potential GDP
Correct Answer:
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Q1: Which of the following does NOT affect
Q2: Q3: The aggregate supply curve shows the relationship Q4: Which of the following changes aggregate supply Q5: A rise in the price level brings Q7: Moving along the AS curve, when the![]()
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