For movements along the long-run aggregate supply curve
A) the price level changes while the money wage rate remains constant.
B) the prices of goods and services change while the prices of productive resources remains constant.
C) the price level and the money wage rate change by the same percentage.
D) the price level and the real wage rate change by the same percentage.

Question

Quizplus · Accepted Answer

Movements along the long-run aggregate supply curve imply that both the price level and the money wage rate change by the same percentage, maintaining the real wage rate constant and reflecting changes in the general price level without affecting real output.

For Movements Along the Long-Run Aggregate Supply Curve