What is the effect of an increase in the price level when the money wage rate remains unchanged? A. Aggregate supply increases. B. Potential GDP increases. C. The quantity of real GDP supplied increases. D. Resource prices increase by the same percentage as the increase in the price level.

What is the effect of an increase in the price level when the money wage rate remains unchanged? A. Aggregate supply increases. B. Potential GDP increases. C. The quantity of real GDP supplied increases. D. Resource prices increase by the same percentage as the increase in the price level.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Aggregate Demand And Supply

Section: Chapter Questions

Problem 6SQP

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Question

What is the effect of an increase in the price level when the money wage rate remains unchanged?

Aggregate supply increases.

Potential GDP increases.

The quantity of real GDP supplied increases.

Resource prices increase by the same percentage as the increase in the price level.

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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