When the Level of Wages in an Economy Fully Adjust

question 64

Multiple Choice

When the level of wages in an economy fully adjust to changes in inflation, _____.

• A) aggregate supply will increase
• B) aggregate supply will remain constant
• C) aggregate supply will decrease
• D) firms' costs and revenues will vary frequently

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Definitions:

Likely

A term indicating that something has a high probability of occurring or being the case.

Measurements

The process or action of obtaining quantitative data or the size, length, or amount of something, using standard units.

Resamples

The process of repeatedly taking samples from a given dataset, often used in statistical methods to estimate properties of a population.

Distinct

Characterized by being different, unique, or not identical when comparing two or more elements, items, or characteristics.