A fall in the money wage rate ________ aggregate supply and ________.
A)decreases;shifts the AS curve rightward
B)increases;shifts the AS curve leftward
C)does not change;does not shift the AS curve
D)decreases;shifts the AS curve leftward
E)increases;shifts the AS curve rightward

Question

Quizplus · Accepted Answer

A fall in the money wage rate reduces production costs, leading to an increase in aggregate supply, which shifts the AS curve rightward.

A Fall in the Money Wage Rate ________ Aggregate Supply