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Moving Along the Potential GDP Line,when the Price Level Changes,the

question 291

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Moving along the potential GDP line,when the price level changes,the
I.real wage rate stays at the full-employment equilibrium level.
Ii.money wage rate changes by the same percentage.
Iii.money prices of non-labor resources change by the same percentage.


Definitions:

Reactants

Substances initially present in a chemical reaction that are consumed during the reaction to create products.

Endergonic Reactions

Chemical reactions that require an input of energy to proceed and are characterized by a positive change in free energy.

Exergonic Reactions

Chemical reactions that release energy, generally in the form of heat, and occur spontaneously.

Input of Energy

The introduction or absorption of energy into a system or process to initiate or drive reactions.

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