66) An increase in the money wage rate and an increase in the money prices of ra
ID: 1116230 • Letter: 6
Question
66) 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 67) An increase in potential GDP aggregate supply and- A) decreases; shifts the AS curve rightward B) increases; shifts the AS curve leftward C) increases; shifts the AS curve rightward D) decreases; shifts the AS curve leftward E) has no effect on; does not shift the AS curve Price level (GDP Rrice index, 2009 = 100) Potential GDP AS2 Real GDP (trillions of 2009 dollars) 68) The change reflected in the above figure might be a result of A) a decrease in the quantity of capital. B) an increase in the quantity of labor. C) a rise in the money wage rate. D) a decrease in the money prices of resources other than labor. E) a fall in the price level. 69) The AD curve is a graph depicting the A) relationship between the price level and the quantity of real GDP supplied B) business cycle during expansions and recessions. C) relationship between the price level and the quantity of real GDP demanded. D) relationship between the price level and potential GDP. B) relationship between the aggregate quantity of real GDP demanded and the aggregate quantity of real GDP supplied.Explanation / Answer
66 B) The AS curve shifts to the left in there is an increase in the cost of production of goods and services.
67. C) An increase in potential GDP will cause the aggregate supply to shift rightward.
68 C. An increase in the money wage rate will cause AS to shift to the left.
69 C. The AD shows the amount of total goods and services demanded at various prices.
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