-The Change in Potential Real GDP and Aggregate Supply Shown

question 51

Multiple Choice

-The change in potential real GDP and aggregate supply shown in the graph above can be a result of

• A) a decrease in the money price of oil.
• B) an increase in the real wage rate.
• C) a fall in the price level.
• D) a decrease in the money wage rate.
• E) an increase in the quantity of capital.

---

Definitions:

Government Subsidies

Financial assistance provided by the government to businesses, individuals, or institutions to support economic activities deemed beneficial.

Sockeye Salmon

A species of salmon found in the Pacific Ocean, known for its red flesh and considered a significant fishery resource.

Individual Transferable Quotas

Regulatory tools in environmental policy and fisheries management, allowing for the controlled production or harvest of resources by assigning quotas that can be traded among individuals.

Total Allowable Catch Policies

Regulations determining the maximum quantity of a particular species of fish that can be caught over a certain period of time to prevent overfishing.