The quantity of real GDP supplied ________ when the price level increases because ________.
A)decreases;investment increases
B)increases;the quantity of money increases
C)increases;the real wage rate falls
D)decreases;the real wage rate rises
E)increases;aggregate demand increases

Question

Quizplus · Accepted Answer

When the price level increases, the real wage rate falls, making it cheaper for firms to hire labor, which increases the quantity of real GDP supplied.

The Quantity of Real GDP Supplied ________ When the Price