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Suppose That the Nominal Wage Falls by X Percent,and a Certain

Question 58

Multiple Choice

Suppose that the nominal wage falls by x percent,and a certain change in the price level maintains the same real wage as before.In the SAS diagram these events cause


A) no change at all,as they offset each other.
B) a downward movement along the SAS curve.
C) an upward movement along the SAS curve.
D) a downward shift of the SAS curve.
E) an upward shift of the SAS curve.

Correct Answer:

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