In a Short- Run Macroeconomic Equilibrium, Potential GDP Exceeds Real

question 57

Multiple Choice

In a short- run macroeconomic equilibrium, potential GDP exceeds real GDP. If aggregate demand does not change, then the

• A)long- run aggregate supply curve will shift leftward as the money wage rate falls.
• B)short- run aggregate supply curve will shift rightward as the money wage rate falls.
• C)long- run aggregate supply curve will shift leftward as the money wage rate rises.
• D)short- run aggregate supply curve will shift leftward as the money wage rate rises.

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Definitions:

Gross Method

An accounting practice where the purchase discount is not recorded at the time of purchase but is instead recognized when the discount is actually taken.

Merchandise Return

The process of a customer returning previously purchased merchandise to the seller, usually for a refund, store credit, or an exchange.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made on a periodic basis rather than after each transaction.

Gross Method

An accounting method for recording purchases at their gross price without deducting any cash discounts.