If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move?
What will be an ideal response?
If the price level and the money wage rate rise by the same percentage, there is no change in the quantity of real GDP supplied and a movement occurs up along the LAS curve.
Economics
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The cross-price elasticity of demand can tell us whether goods are
a. normal or inferior. b. elastic or inelastic. c. luxuries or necessities. d. complements or substitutes.
Economics
In the short run, a perfectly competitive firm can make a profit, a loss, or shut down.
Answer the following statement true (T) or false (F)
Economics