Moving Along the AS Curve, When the Price Level Increases

question 9

Multiple Choice

Moving along the AS curve, when the price level increases, the

• A) real wage rate rises, and there is a decrease in the quantity of real GDP supplied.
• B) nominal wage rate rises, and there is a decrease in the quantity of real GDP supplied.
• C) real wage rate falls, and there is an increase in the quantity of real GDP supplied.
• D) real wage rate rises, and there is an increase in the quantity of real GDP supplied.
• E) nominal wage rate falls, and there is an increase in the quantity of real GDP supplied.

Learn the methodologies and significance of systematic observation in research.

Comprehend the development and influence of behaviorism and its proponents.

Know the stages and mechanisms of cognitive development according to Piaget.

Understand the historical development and significance of assessment procedures.

---

Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production inputs.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost

The uptick in the sum total of costs due to the production of an additional unit of a good or service.