Moving Along the Short-Run Aggregate Supply Curve,___________

question 91

Multiple Choice

Moving along the short-run aggregate supply curve,___________

• A) the money wage rate, the prices of other resources, and potential GDP remain constant
• B) real GDP equals nominal GDP
• C) the real wage rate is constant
• D) real GDP equals potential GDP

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Definitions:

Decreases

A reduction in size, quantity, or degree; the opposite of increases.

Tax

A mandatory monetary fee or tax levied by a government on individuals or organizations to finance public spending.

Price Elasticity

An indicator of the sensitivity of the demand for a product to fluctuations in its price.

Gasoline Demand

The total quantity of gasoline that consumers are willing and able to purchase at a given price over a certain period.