Multiple Choice
Which of the following statements is true?
A) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward.
B) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward.
C) An increase in the money wage rate shifts the AS curve rightward.
D) A fall in the price level shifts the AS curve leftward.
E) An increase in the money wage rate increases potential GDP.
Correct Answer:

Verified
Correct Answer:
Verified
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