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If the Price Level Falls and the Money Wage Rate

Question 37

Multiple Choice

If the price level falls and the money wage rate does not change,some firms ________ and there is ________.


A) shut down;a leftward shift of the aggregate supply curve
B) start up;a rightward shift of the aggregate supply curve
C) shut down;a decrease in the quantity of real GDP supplied
D) shut down;a decrease in potential GDP
E) start up;an increase in potential GDP

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