Which of the following occurs while moving along a short-run aggregate supply curve?
A) The money wage rate and the price level change by the same percentage.
B) The money wage rate changes and the price level is constant.
C) The price level changes and the money wage rate is constant.
D) Neither the price level nor the money wage rate changes.
C
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Which of the following statements best defines hyperinflation?
A) It is a situation when the annual rate of inflation in an economy is between 20% to 50%. B) It is a situation when the annual rate of inflation in an economy exceeds 50%. C) It is a situation when the annual rate of inflation in an economy is between 10% to 20%. D) It is a situation when the annual rate of inflation in an economy is between 0% to 10%.
With sticky prices increasing, the supply of money results in:
a. an increase in the nominal rate of interest. b. an increase in the U.S. dollar exchange rate. c. a decrease in the nominal rate of interest. d. increased price and wage flexibility.