If the Price Level Falls and the Money Wage Rate

question 37

Multiple Choice

If the price level falls and the money wage rate does not change,some firms ________ and there is ________.

• A)shut down;a leftward shift of the aggregate supply curve
• B)start up;a rightward shift of the aggregate supply curve
• C)shut down;a decrease in the quantity of real GDP supplied
• D)shut down;a decrease in potential GDP
• E)start up;an increase in potential GDP

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Definitions:

Lightly Populated Areas

Regions or territories that have low population density, meaning there are few people per unit area of land.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli, which have qualities of real perception.

Hearing

The sensory process that enables the perception of sound, involving the detection of sound waves by the ear and their interpretation by the brain.

Dopamine Receptors

Proteins located on the surface of nerve cells that bind to dopamine, a neurotransmitter involved in movement, motivation, and pleasure.