An increase in the price level when the money wage rate remains unchanged increases _______
The graph shows a long-run aggregate supply curve and a short-run aggregate supply curve.
Draw an arrow along one of the curves that illustrate a rise in the price level when the money wage rate remains unchanged. Label it 1. Draw an arrow along one of the curves that illustrate a rise in the price level accompanied by the same percentage rise in the money wage rate. Label it 2.
An increase in the price level when the money wage rate remains unchanged increases _______
A. factor prices by the same percentage as the increase in the price level
B. potential GDP
C. aggregate supply
D. the quantity of real GDP supplied
Homework Answers
Answer, d is the right option
An increase in the price level when the money wage rate remains unchanged increases the quantity of real GDP supplied.
- When we move up along the short run aggregate supply curve,the money wage rate, the prices of other resources, and potential GDP remain Constant
- When rise in the money wage rate the quantity that firms are willing to supply at each price level decreases.
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An increase in the price level when the money wage rate remains unchanged increases _______
The graph shows an economy's potential GDP and the aggregate supply curve. Price level (GDP price...
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3)If the price level rises and the money wage-rate remains constant, what happens to the quantity...
3)If the price level rises and the money wage-rate remains constant, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move? (Detail Answer)
Suppose that workers and firms perfectly forecast inflation, so that the real wage remains unchanged as...
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If the money wage rate and other resource prices do not change when the price level...
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12. When the Federal Reserve increases the money supply, at a given price level the amount...
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If the money wage rate and other resource prices do not change when the price level rises by 10 percent, Select one: a. the short-run aggregate supply curve shifts leftward b. the long-run aggregate supply curve shifts rightward c. the long-run aggregate supply curve shifts leftward d. there is movement along the short-run aggregate supply curve Next page G 2019 Hamdan Bin Mohammed Smart University. All rights reserved
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• if the velocity of money is 2, the money supply in this
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•because ( the federal reserve controls M/ velocity is assumed
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increase in the price level Is ( less then/ the same as/ greater
then ) the percentage increase im the money supply. the illustrates
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