-The data in the above table show that when the price level is 120, if aggregate demand does not change then the
A) money wage rate will rise in the future.
B) money wage rate will fall in the future.
C) short-run aggregate supply curve will shift leftward.
D) long-run aggregate supply curve will shift leftward.

Question

-The data in the above table show that when the price level is 120, if aggregate demand does not change then the
A) money wage rate will rise in the future. 
B) money wage rate will fall in the future. 
C) short-run aggregate supply curve will shift leftward. 
D) long-run aggregate supply curve will shift leftward.

Quizplus · Accepted Answer

If the price level is above the equilibrium level and aggregate demand does not change, there will be a surplus of goods and services, leading to downward pressure on prices and wages, causing the money wage rate to fall in the future.

-The Data in the Above Table Show That When the Price