Which of the following occurs while moving along a short-run aggregate supply curve?
A) The money wage rate and the price level change by the same percentage.
B) The money wage rate changes and the price level is constant.
C) The price level changes and the money wage rate is constant.
D) Neither the price level nor the money wage rate changes.
C
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One cost of a perfectly anticipated inflation is that it
A) transfers wealth from lenders to borrowers. B) transfers wealth from borrowers to lenders. C) increases menu costs. D) damages the role of prices as signals in the economy.
One of the basic principles of economics is that markets are usually a good way to organize economic activity. This principle is explained by the study of
a. factor markets. b. energy markets. c. welfare economics. d. labor economics.
Federal Reserve Notes are
A. the currency part of the United States money supply. B. United States government securities owned by the Fed. C. the backing for all bank account balances. D. used exclusively by the government to pay off its debt.
M2 is comprised of
A) small-denomination time deposits + savings deposits + money market accounts. B) small-denomination time deposits + credit cards + money market accounts + gold deposits. C) M1 + small-denomination time deposits + savings deposits + retail money market mutual funds. D) M1 + small denomination time deposits + credit cards + money market accounts.