For movements along the short-run aggregate supply curve,
A) potential GDP remains constant.
B) the money wage rate is 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, potential GDP remains constant, the money wage rate is assumed to be constant, and the real wage rate changes due to price level changes.

For Movements Along the Short-Run Aggregate Supply Curve