In a Short-Run Macroeconomic Equilibrium, Potential GDP Exceeds Real GDP

question 375

Multiple Choice

In a short-run macroeconomic equilibrium, potential GDP exceeds real GDP. If aggregate demand does not change, then the

• A) short-run aggregate supply curve will shift rightward as the money wage rate falls.
• B) short-run aggregate supply curve will shift leftward as the money wage rate rises.
• C) long-run aggregate supply curve will shift leftward as the money wage rate rises.
• D) long-run aggregate supply curve will shift leftward as the money wage rate falls.

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