If Real GDP Is Less Than Potential GDP,then the Money

question 75

Multiple Choice

If real GDP is less than potential GDP,then the money wage rate ________,and aggregate supply ________ so that the price level ________.

• A)rises;decreases;rises
• B)falls;increases;falls
• C)rises;increases;falls
• D)falls;decreases;rises
• E)does not change;increases;falls

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Definitions:

Positive Correlation

A statistical relationship between two variables in which they move in the same direction, meaning as one variable increases, so does the other.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, and vice versa.

Alcohol Consumption

The intake of beverages containing ethanol, which can have various effects on health and behavior depending on the amount and frequency of use.

Independent Variables

Factors in an experiment that are intentionally manipulated to observe their effect on dependent variables.