The minimum wage is a good example of a price floor

Higher resource costs shift the

A) long-run aggregate supply curve leftward, decreasing real GDP and increasing potential GDP. B) short-run aggregate supply curve leftward, raising the price level and decreasing potential GDP. C) short-run aggregate supply curve leftward, raising the price level and decreasing real GDP so it is less than potential GDP. D) short-run aggregate supply curve rightward, raising the price level and decreasing real GDP so it is less than potential GDP.

If all prices fall by 5 percent and money income remains constant, the new budget line will have

A) a positive slope. B) the same slope. C) a steeper slope. D) a flatter slope.