Multiple Choice
A fall in the price level brings a ________ in the real wage rate that ________ profits which leads to ________.
A) rise;reduces;firms restarting production
B) rise;reduces;firms temporarily shutting down
C) fall;increases;firms temporarily shutting down
D) rise;increases;firms restarting production
E) rise;increases;firms temporarily shutting down
Correct Answer:

Verified
Correct Answer:
Verified
Q199: A change in any component of aggregate
Q200: Changes in which of the following shifts
Q201: An increase in government expenditure on goods
Q202: If real GDP is less than potential
Q203: An inflationary gap is created when<br>A)real GDP
Q205: An increase in the price level leads
Q206: _ decreases aggregate supply.<br>A)An increase in potential
Q207: Moving along the aggregate supply curve,<br>A)the quantity
Q208: Which of the following does NOT shift
Q209: Stagflation is defined as a period when