Multiple Choice
Suppose that the money wage in the economy increases by 8 percent. As a result the
A) long- run aggregate supply will increase and the short- run aggregate supply will decrease.
B) long- run aggregate supply will decrease.
C) short- run aggregate supply will decrease.
D) long- run and the short- run aggregate supply both decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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