If the Money Wage and Other Resource Prices Do Not

question 203

Multiple Choice

If the money wage and other resource prices do not change when the price level rises by 10 percent, .

• A) the short-run aggregate supply curve shifts leftward
• B) there is movement along the short-run aggregate supply curve
• C) the long-run aggregate supply curve shifts leftward
• D) the long-run aggregate supply curve shifts rightward

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with all other factors being held constant.

Immigration

The act of moving to a new country or region with the intention of settling there.

Wage Earnings

Income received by an individual in return for labor or services performed, usually calculated on an hourly, daily, or piecework basis.

Remittances

Money sent by migrants to their home country or region, usually to family members, contributing significantly to the economy of the recipient area.