If the money wage rate rises and potential GDP remains the same, does the LAS curve or the SAS curve shift or is there a movement along the LAS curve or the SAS curve?
What will be an ideal response?
If the money wage rate rises and potential GDP remains the same there is a decrease in short-run aggregate supply and no change in long-run aggregate supply. The SAS curve shifts leftward and the LAS curve is unchanged.
Economics
You might also like to view...
Even though the market for bricks has a low concentration ratio nationally, the U.S. Justice Department might still scrutinize any mergers in this industry because the
A) HHI is high nationally. B) HHI is above 1800 nationally. C) HHI is below 1800 nationally. D) market is regional not national, and the regional concentration might be high.
Economics
d. Ishmael goes to the ATM twice a week because consumer prices have been fluctuating so rapidly.
a. 0 percent b. 1 percent c. 2 percent d. 3 percent
Economics