Use the Following to Answer Questions

question 84

Multiple Choice

Use the following to answer questions.
Exhibit: The Aggregate Demand/Aggregate Supply Model 1
-(Exhibit: The Aggregate Demand/Aggregate Supply Model 1) For the economy represented in the figure,

• A) the real wage rate is higher than full-employment real wage.
• B) the real wage rate is lower than full-employment real wage.
• C) the nominal wage rate is higher than full-employment nominal wage.
• D) the nominal wage rate is lower than full-employment nominal wage.

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