When the Price Level Rises and the Money Wage Rate

question 18

Multiple Choice

When the price level rises and the money wage rate does not change,

• A)existing businesses do not change their level of output.
• B)the quantity of real GDP supplied decreases as more businesses fail and potential GDP does not change.
• C)profits fall and more businesses fail.
• D)the quantity of real GDP supplied increases as more businesses start up and potential GDP does not change.
• E)the quantity of potential GDP increases because the quantity of real GDP supplied increases.

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Definitions:

Visual Cell

A type of cell in the retina that is sensitive to light and enables vision.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light images into neural signals sent to the brain.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Neural Tissue

Neural tissue refers to the specialized cells and biological material that make up the nervous system, including the brain, spinal cord, and nerves, facilitating the transmission of electrical signals throughout the body.