-In the above figure,the economy is at point A and the money wage rate rises by 10 percent.If the price level is constant,firms will be willing to supply output equal to
A) less than $13.0 trillion
B) $13.0 trillion
C) more than $13.0 trillion
D) Without more information, it is impossible to determine which of the above answers is correct.

Question

-In the above figure,the economy is at point A and the money wage rate rises by 10 percent.If the price level is constant,firms will be willing to supply output equal to
A) less than $13.0 trillion 
B) $13.0 trillion 
C) more than $13.0 trillion 
D) Without more information, it is impossible to determine which of the above answers is correct.

Quizplus · Accepted Answer

If the money wage rate rises by 10 percent while the price level remains constant, firms will face higher production costs, leading them to reduce the quantity of output supplied. Therefore, the output will be less than $13.0 trillion.

-In the Above Figure,the Economy Is at Point a and the Money