-In the above figure, which movement illustrates the impact of a falling price level and a constant money wage rate?
A) E to I
B) E to F
C) E to J
D) E to H

Question

-In the above figure, which movement illustrates the impact of a falling price level and a constant money wage rate?
A) E to I 
B) E to F 
C) E to J 
D) E to H

Quizplus · Accepted Answer

A movement from E to I illustrates the impact of a falling price level with a constant money wage rate, as it represents a decrease in the price level leading to an increase in real GDP, assuming wages remain unchanged.

-In the Above Figure, Which Movement Illustrates the Impact of a Falling