Suppose the Price Level Rises and the Money Wage Remains

question 381

Multiple Choice

Suppose the price level rises and the money wage remains constant. This set of changes leads to

• A) an upward movement along the LAS curve.
• B) an upward movement along the SAS curve.
• C) a leftward shift of the SAS curve.
• D) a leftward shift of the SAS curve and the LAS curve.

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Definitions:

Merchandising Entities

Companies that purchase goods at wholesale prices and sell them at retail prices, making a profit from the markup.

Cost of Goods

The total expense incurred to produce products sold by a company, including direct materials, direct labor, and manufacturing overheads.

Front Office

The part of a company that deals directly with customers, providing services, support, and interaction with clients and visitors.

Back Office

The administrative and support personnel in a company who are not client-facing, responsible for functions such as IT, human resources, accounting, and compliance.