During 2010, a Country Reports That Its Price Level Fell

question 123

Multiple Choice

During 2010, a country reports that its price level fell and the money wage rate did not change. These changes lead to

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