The horizontal segment of the aggregate supply curve:
a. shows that real GDP can increase only by affecting the economy's price level.
b. shows that real GDP can increase without affecting the economy's price level.
c. depicts a positive relationship between real GDP and the price level.
d. depicts a negative relationship between real GDP and the price level.
e. marks the full-employment level of real GDP.
b
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Refer to Figure 14.3. To maximize total wages paid to workers, the labor union will agree to wage rate:
A) W0. B) W1. C) W2. D) W3. E) none of the above
Patty runs a small organic peanut butter company with five employees and local sales of $100,000 per year. She estimates that the shape of her total variable cost curve largely reflects her costs of
a. peanuts b. electricity c. packaging d. labor e. marketing