For movements along the long-run aggregate supply curve,
What will be an ideal response?
the price level and the money wage rate change in the same proportion.
You might also like to view...
For a given nominal exchange rate and foreign price level, an increase in the domestic price level ________ the real exchange rate.
A. offsets any change in B. increases C. may either increase or decrease D. decreases
The above table has the demand for money schedule
a) If the Fed supplies $1.1 trillion dollars, what is the equilibrium interest rate? b) Discuss how equilibrium is restored if the interest rate is greater than the equilibrium rate found in part (a).
In the economy of Talikastan in 2015, consumption was $700, exports were $200, government purchases were $300, imports were $150, and investment was $400 . What was Talikastan's GDP in 2015?
a. $1350 b. $1450 c. $1050 d. $1750
Which of the following shifts both the short-run and long-run aggregate supply right?
a. an increase in the actual price level b. an increase in the expected price level c. an increase in the capital stock d. None of the above is correct.