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    Essential Foundations of Economics Study Set 1
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    Exam 19: Aggregate Supply and Aggregate Demand
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    If the Money Wage Rate Is Constant and the Price
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If the Money Wage Rate Is Constant and the Price

Question 114

Question 114

Essay

If the money wage rate is constant and the price level increases,what happens to the real wage rate,firms' profits,and the aggregate quantity supplied?

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The real wage rate falls.Because the pri...

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