Suppose that the economy of Wetland shown in the following figure is in full-employment equilibrium and the present nominal wage is $800 per week
a)What is the real wage (in base year prices)?
b)Suppose that aggregate demand increases by $100.At the new equilibrium,what will be the new value of the real wage rate?
c)As a result of the change in b),suppose the nominal wage increases,causing aggregate supply to decrease by $100.At the new equilibrium,what will be the new real wage rate?
d)At the new equilibrium in c),what is the value of the nominal wage rate?

Question

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The Answer of Suppose that the economy of Wetland shown in the following figure is in full-employment equilibrium and the present nominal wage is $800 per week
a)What is the real wage (in base year prices)?
b)Suppose that aggregate demand increases by $100.At the new equilibrium,what will be the new value of the real wage rate?
c)As a result of the change in b),suppose the nominal wage increases,causing aggregate supply to decrease by $100.At the new equilibrium,what will be the new real wage rate?
d)At the new equilibrium in c),what is the value of the nominal wage rate?

Suppose That the Economy of Wetland Shown in the Following