In a short-run macroeconomic equilibrium, potential GDP exceeds real GDP. If aggregate demand does not change, then the
A) short-run aggregate supply curve will shift rightward as the money wage rate falls.
B) short-run aggregate supply curve will shift leftward as the money wage rate rises.
C) long-run aggregate supply curve will shift leftward as the money wage rate rises.
D) long-run aggregate supply curve will shift leftward as the money wage rate falls.
A
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In Zimbabwe, at the height of the feedback loop:
A. prices were increasing by 7.6 billion percent per month. B. real GDP was increasing by 7.6 billion percent per month. C. the money supply was increasing by 7.6 billion percent per month. D. the velocity of money was increasing by 7.6 billion percent per month.
If the value of marginal product of a worker is $40 and the marginal product of the worker is 8 units, the market price of the good he produces is:
A) $2. B) $5. C) $8. D) $10.