During 2008, a country reports that its price level fell and the money wage rate

Question

During 2008, a country reports that its price level fell and the money wage rate did not change. These changes lead to

A)

a lower real wage rate, lower profits, and a decrease in the quantity of real GDP supplied.
B)

no change in the real wage rate and an increase in aggregate demand.
C)

a higher real wage rate, higher profits, and an increase in the quantity of real GDP supplied.
D)

a higher real wage rate, lower profits, and a decrease in the quantity of real GDP supplied.
E)

a lower real wage rate, higher profits, and an increase in the quantity of real GDP supplied.

Explanation / Answer

D) That's why we have QE2, Ben is worried about that.

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