For movements along the long-run aggregate supply curve
A) potential GDP is dependent on the price level.
B) the prices of goods and services change while the prices of productive resources hold steady.
C) the price level and the money wage rate change by the same percentage.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Movements along the long-run aggregate supply curve reflect changes in the price level where the price level and the money wage rate change by the same percentage, keeping real wages constant and not affecting the quantity of goods and services supplied in the long run.

For Movements Along the Long-Run Aggregate Supply Curve