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- If the Money Wage Rate and the Price Level Both

Question 108

Multiple Choice

  -  If the money wage rate and the price level both rise by the same proportion, then in the figure above the potential GDP line <sub>--------------------</sub> , and the aggregate supply curve <sub>--------------------</sub> . A) does not shift; shifts rightward B) shifts rightward; does not shift C) does not shift; shifts leftward D) shifts rightward; shifts leftward E) shifts rightward; shifts rightward
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If the money wage rate and the price level both rise by the same proportion, then in the figure above the potential GDP line -------------------- , and the aggregate supply curve -------------------- .


A) does not shift; shifts rightward
B) shifts rightward; does not shift
C) does not shift; shifts leftward
D) shifts rightward; shifts leftward
E) shifts rightward; shifts rightward

Correct Answer:

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