During 2018, a Country Reports That Its Price Level Fell

question 13

Multiple Choice

During 2018, a country reports that its price level fell and the money wage rate did not change. These changes led to

• A) no change in the real wage rate and an increase in aggregate demand.
• B) a lower real wage rate, lower profits, and a decrease in the quantity of real GDP supplied.
• C) a higher real wage rate, higher profits, and an increase in the quantity of real GDP supplied.
• D) a higher real wage rate, lower profits, and a decrease in the quantity of real GDP supplied.
• E) a lower real wage rate, higher profits, and an increase in the quantity of real GDP supplied.

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Definitions:

Habituation

The process by which an individual becomes accustomed to a stimulus, leading to a decrease in response over time.

Visual-recognition Memory

The ability to remember and recognize previously encountered objects or individuals by sight.

Cross-modal Transference

The ability to transfer information acquired through one sensory modality to another.

Habituation Time

The duration it takes for an individual to become accustomed or less responsive to a repetitive stimulus.