Suppose That the Money Wage in the Economy Increases by 8

question 117

Multiple Choice

Suppose that the money wage in the economy increases by 8 percent. As a result the

• A) long-run aggregate supply will decrease.
• B) long-run and the short-run aggregate supply both decrease.
• C) short-run aggregate supply will decrease.
• D) long-run aggregate supply will increase and the short-run aggregate supply will decrease.

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Definitions:

Anterior Pituitary Gland

A major endocrine gland located at the base of the brain, responsible for producing and releasing hormones that regulate many key physiological processes.

Hypothalamus

A region of the brain that regulates many bodily functions, including temperature control, hunger, thirst, emotional behavior, and the circadian rhythm.

Second Messenger

Intracellular signaling molecules released by the cell in response to exposure to extracellular signaling molecules.

Thyroxine

A hormone produced by the thyroid gland that regulates metabolism, energy generation, and growth and development.