Refer to the graphs below. Graph A is constructed on the basic assumption that:
In the graphs below, QP refers to the economy's potential output level.
A. The price level is not flexible
B. Nominal wages are unresponsive to price-level changes
C. Real output is unresponsive to price-level changes
D. Unemployment is unresponsive to price-level changes
B. Nominal wages are unresponsive to price-level changes
Economics