For movements along the short- run aggregate supply curve,
A) the money wage rate is constant.
B) potential GDP remains constant.
C) the real wage rate changes.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

In the short-run aggregate supply curve, the money wage rate is constant, potential GDP remains constant, and the real wage rate changes due to price level changes.

For Movements Along the Short- Run Aggregate Supply Curve