- If the Money Wage Rate and the Price Level Both

question 59

Multiple Choice

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If the money wage rate and the price level both rise by the same proportion, then in the figure above the potential GDP line _{--------------------} , and the aggregate supply curve _{--------------------} .

• A)does not shift; shifts rightward
• B)shifts rightward; does not shift
• C)does not shift; shifts leftward
• D)shifts rightward; shifts leftward
• E)shifts rightward; shifts rightward

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction, particularly in the United States.

Quality Control

The processes and procedures put in place to ensure that products or services meet defined quality standards.

Environmental Pollution

The contamination of the natural environment due to harmful substances or actions, causing adverse effects on living organisms and ecosystems.