Question : 41) If the money wage rate does not change, a : 1238142

41) If the money wage rate does not change, a decrease in the price level will ________ the real wage rate and ________ firms’ profit.

A) raise; decrease

B) raise; increase

C) lower; decrease

D) lower; increase

E) lower; not change

42) The money wage rate is constant when moving along

A) only the aggregate supply curve.

B) only the aggregate supply curve and the potential GDP line.

C) only the potential GDP line.

D) neither the aggregate supply curve nor the potential GDP line.

E) the aggregate supply curve, the potential GDP line, and the aggregate demand curve.

43) The aggregate supply curve slopes ________ because a ________ in the price level brings a ________ in the real wage rate.

A) upward; rise; rise

B) downward; fall; rise

C) upward; rise; fall

D) upward; fall; fall

E) downward; rise; rise

44) Along the aggregate supply curve, the quantity of real GDP supplied increases when the price level rises because

A) profits decrease.

B) the real wage rate falls.

C) the real wage rate rises.

D) the real wage rate and profits both fall.

E) the demand for the goods and services increases.

45) A fall in the price level brings a ________ in the real wage rate that ________ profits and can lead to ________.

A) rise; reduces; firms going out of business

B) rise; reduces; new firms entering business

C) fall; increases; firms going out of business

D) rise; increases; new firms entering business

E) fall; decreases; new firms entering business

46) A rise in the price level brings a ________ in the real wage rate that ________ profits which leads to ________ production.

A) rise; reduces; decreasing

B) rise; reduces; increasing

C) fall; increases; increasing

D) rise; increases; decreasing

E) fall; decreases; decreasing

47) A fall in the price level brings a ________ in the real wage rate that ________ profits which leads to ________.

A) rise; reduces; firms restarting production

B) rise; reduces; firms temporarily shutting down

C) fall; increases; firms temporarily shutting down

D) rise; increases; firms restarting production

E) rise; increases; firms temporarily shutting down

48) Which of the following changes aggregate supply and shifts the aggregate supply curve?

i.change in the price level

ii.change in potential GDP

iii.change in the money wage rate

A) i only

B) ii only

C) iii only

D) ii and iii

E) i, ii, and iii

49) Changes in which of the following shifts the aggregate supply curve?

i.the price level

ii.the money wage rate

iii.potential GDP

A) i only

B) ii only

C) iii only

D) ii and iii

E) i, ii, and iii

50) An increase in the money wage rate ________ and an increase in the money prices of raw materials ________.

A) shifts the AS curve rightward; shifts the AS curve rightward

B) shifts the AS curve leftward; shifts the AS curve leftward

C) shifts the AS curve rightward; shifts the AS curve leftward

D) shifts the AS curve leftward; shifts the AS curve rightward

E) shifts the AS curve leftward; does not shift the AS curve