-In the above figure, which movement illustrates the impact of the price level and money wage rate falling at the same rate?
A) E to J
B) E to K
C) E to H
D) E to G

Question

-In the above figure, which movement illustrates the impact of the price level and money wage rate falling at the same rate?
A) E to J 
B) E to K 
C) E to H 
D) E to G

Quizplus · Accepted Answer

When the price level and money wage rate fall at the same rate, the real wage remains unchanged, leading to a movement along the aggregate supply curve, such as from E to J.

-In the Above Figure, Which Movement Illustrates the Impact of the Price