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Moving Along the Potential GDP Line, When the Price Level

Question 66

Multiple Choice

Moving along the potential GDP line, when the price level changes, the
I. real wage rate stays at the full-employment equilibrium level.
Ii. money wage rate changes by the same percentage.
Iii. money prices of non-labor resources change by the same percentage.


A) iii only
B) i and ii
C) i only
D) i, ii, and iii
E) ii only

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