Moving Along the AS Curve,when the Price Level Increases,the

question 295

Multiple Choice

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

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

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Definitions:

Supply Curve

A graph that details the interaction between the price level of a commodity and the quantity of it provided.

Per-unit Tax

A tax imposed on each unit of a good or service sold, affecting the supply curve by increasing production costs.

Tax Burden

The total amount of tax levied on an individual, corporation, or other entity, often expressed as a proportion of income or economic output.

Buyers

Buyers are those who acquire products or services for personal use or for resale, generating demand in the market.