Which statement about the AS curve is correct? A. The AS curve shows the relationship between the quantity of real GDP supplied and potential GDP when all other influences on production plans remain the same. B. On the AS curve, t he quantity of real GDP supplied equals potential GDP at the price level at which the real wage rate is at its full-employment equilibrium level. C. Along the AS curve, a rise in the price level brings a decrease in the quantity of real GDP supplied. D. Along the AS curve, a change in the price level brings an equal percentage change in the money wage rate.
Which statement about the AS curve is correct? A. The AS curve shows the relationship between the quantity of real GDP supplied and potential GDP when all other influences on production plans remain the same. B. On the AS curve, t he quantity of real GDP supplied equals potential GDP at the price level at which the real wage rate is at its full-employment equilibrium level. C. Along the AS curve, a rise in the price level brings a decrease in the quantity of real GDP supplied. D. Along the AS curve, a change in the price level brings an equal percentage change in the money wage rate.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Which statement about the
curve is correct?
A.
The
AS
curve shows the relationship between the quantity of real GDP supplied and potential GDP when all other influences on production plans remain the same.
B.
On the
AS
curve,
t
he
quantity of real GDP supplied equals potential GDP at the price level at which the real wage rate is at its full-employment equilibrium level.
C.
Along the
AS
curve, a rise in the price level brings a decrease in the quantity of real GDP supplied.
D.
Along the
AS
curve, a change in the price level brings an equal percentage change in the money wage rate.
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