Which of the Following Statements Regarding Aggregate Supply Is Correct

question 127

Multiple Choice

Which of the following statements regarding aggregate supply is correct?

• A)Moving along the long- run aggregate supply curve, the money wage rate changes but the price level is constant.
• B)Moving along the short- run aggregate supply curve, the money wage rate changes but the price level is constant.
• C)Moving along the short- run aggregate supply curve, both the price level and the money wage rate change by the same percentage.
• D)Moving along the long- run aggregate supply curve, both the price level and the money wage rate change by the same percentage.

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Definitions:

Tax-Free

Earnings or financial transactions that are exempt from taxation by the government.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Average Tax Rate

The portion of an individual's or entity's taxable income that is paid in taxes, calculated by dividing the total tax amount by the taxable income.

Payroll Tax

A tax imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff.