During 2010,a Country Reports That Its Price Level Fell and the Money

question 97

Multiple Choice

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

---

Definitions:

Money Supply Increases

A situation where the total amount of money in circulation within an economy is expanded.

Nominal GDP

The gross domestic product measured at current market prices, not adjusting for inflation, reflecting the value of all goods and services produced.

Real GDP

The total value of all goods and services produced by an economy over a specific time period, adjusted for inflation.

Price Level

The mean of present prices for all goods and services produced within an economy, typically gauged by a price index.