If the Price Level Falls and the Money Wage Rate

question 37

Multiple Choice

If the price level falls and the money wage rate does not change,some firms ________ and there is ________.

• A)shut down;a leftward shift of the aggregate supply curve
• B)start up;a rightward shift of the aggregate supply curve
• C)shut down;a decrease in the quantity of real GDP supplied
• D)shut down;a decrease in potential GDP
• E)start up;an increase in potential GDP

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Definitions:

Internal Customer

Employees or departments within an organization that rely on the support or services of another part of the organization to do their job effectively.

Emotional Trap

A situation where one's feelings hinder rational decision-making or lead to a negative outcome.

Solutions

Solutions refer to the means of solving a problem or dealing with a difficult situation.

Michael LeBoeuf

An American business author and former management professor at the University of New Orleans, known for his writings on business and management.