In 2008 the Money Wage Rate in Ireland Increased by 4

question 40

Multiple Choice

In 2008 the money wage rate in Ireland increased by 4 percent while the price level increased by 8 percent. As a result, Ireland's

• A) short- run aggregate supply curve shifted leftward.
• B) short- run aggregate supply curve shifted rightward.
• C) short- run and long- run aggregate supply curves shifted rightward.
• D) long- run aggregate supply curve shifted rightward.

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Definitions:

Least-Cost Rate

An economic principle that emphasizes minimizing production or operation costs while achieving a specific output level.

Average Total Cost

The total cost of production divided by the total quantity produced, indicating the cost per unit of output.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the true profitability of a firm.

Competitive Firm

A company that operates in a market where there are many buyers and sellers, and no single entity can control the prices.