Based on the figure above, the aggregate supply curve shifts rightward and the potential GDP line does not change when
A) the money wage rate rises.
B) the price level rises.
C) the money wage rate falls.
D) the price level falls.
E) both the price level and money wage rate rise by the same proportion.
C
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A positive relationship between the rate of change in money prices and real GDP is
A) a leading relationship B) a lagging relationship. C) an example of countercyclicality. D) a Phillips curve.
Refer to the table below for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the total revenue (after tariff) going to domestic producers would be:
A. $11,200, and the total revenue (after tariff) going to foreign producers would be $2,800
B. $11,200, and the total revenue (after tariff) going to foreign producers would be $2,400
C. $8,400, and the total revenue (after tariff) going to foreign producers would be $2,800
D. $13,200, and the total revenue (after tariff) going to foreign producers would be $2,400