The figure above shows an economy's initial Aggregate Supply AS₁ and Potential GDP (Yp) curves, and the new Aggregate Supply curve, AS2. This shift in aggregate supply is mostly likely caused by which of the following? O a. An increase in the price level. O b. A decrease in the nominal wage. O c. An increase in the nominal wage. O d. An increase in the real wage.

The figure above shows an economy's initial Aggregate Supply AS₁ and Potential GDP (Yp) curves, and the new Aggregate Supply curve, AS2. This shift in aggregate supply is mostly likely caused by which of the following? O a. An increase in the price level. O b. A decrease in the nominal wage. O c. An increase in the nominal wage. O d. An increase in the real wage.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Potential GDP is O a. a measure of the short term fluctuations in real GDP. O b. another name for nominal GDP. O c. equal to the maximum amount of goods and services that can be produced at any given time. O d. the level of output produced when the economy is fully employed. O e. another name for real GDP.
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