If Real GDP Is Less Than Potential GDP, Then the Money

question 287

Multiple Choice

If real GDP is less than potential GDP, then the money wage rate ________, aggregate supply ________ so that the price level ________.

• A)rises; decreases; rises
• B)falls; increases; falls
• C)rises; increases; falls
• D)falls; decreases; rises
• E)does not change; increases; falls

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Definitions:

Biological

Related to the study of living organisms and their vital processes, often emphasizing genetic and physiological attributes.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Heredity

The passing of traits from parents to their offspring, either through asexual or sexual reproduction.

Nurture

The influence of external factors after conception, such as environmental and educational experiences, on personal development.