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The graph gives a long-run aggregate supply curve and a short-run aggregate Price level (GDP deator, 2007:100) supply curve. 13 Draw a new curve that

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The graph gives a long-run aggregate supply curve and a short-run aggregate Price level (GDP deator, 2007:100) supply curve. 13 Draw a new curve that shows the effect of a rise in the money wage rate. Label it. E) With a rise in the money wage rate, O A. rms have an incentive to use more capital-intensive methods in production, which will increase potential GDP in the long run 0 B. the quantity that rms are willing to supply at each price level decreases E O c. potential GDP decreases in the long run because the size of the labour force decreases O D. rms have an incentive to produce more because they can charge a higher price 1.6 1.7 1.8 1.9 2.0 Real GDP (trillions of 2007 dollars) >>> Draw only the objects specied in the

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