If the Money Wage Rate and Other Resource Prices Do

question 371

Multiple Choice

If the money wage rate and other resource prices do not change when the price level rises by 10 percent,

• A) the long-run aggregate supply curve shifts leftward.
• B) the short-run aggregate supply curve shifts leftward.
• C) the long-run aggregate supply curve shifts rightward.
• D) there is movement along the short-run aggregate supply curve.

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Definitions:

Total Utility

The complete pleasure or advantage a customer gets from using a certain amount of products or services.

Rational Consumer

An economic concept of a consumer who seeks to maximize utility or satisfaction from goods and services within their budget constraints.

Equilibrium

The state in which market supply and demand balance each other, and as a result, prices become stable.

Maximum Utility

The highest level of satisfaction or benefit that a consumer can obtain from the consumption of goods and services within the constraints of their income and prices.