Based on the figure above, the aggregate supply curve shifts rightward and the potential GDP line does not change when
A) the money wage rate rises.
B) the price level rises.
C) the money wage rate falls.
D) the price level falls.
E) both the price level and money wage rate rise by the same proportion.
C
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Which of the following is the best way to describe equilibrium in a market? At equilibrium, the
A) price is the lowest possible. B) price is usually affordable to most people. C) supply and demand curves can never shift again. D) quantity supplied equals the quantity demanded.
Government actions can cause a
A) shift in the supply curve. B) shift in the demand curve. C) reaction from firms in other countries. D) All of the above.
Which of the following determines equilibrium wages in perfectly competitive labor markets?
a. The government. b. Monopoly employers. c. Where the supply and demand of labor are equal. d. The requirements of a living wage.
Income ________ along the demand curve.
A. decreases B. increases C. either increases or decreases D. is held constant