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The graph shows an economy's potential GDP and the aggregate supply curve. Draw an arrow that shows a rise in the price level when the
The graph shows an economy's potential GDP and the aggregate supply curve. Draw an arrow that shows a rise in the price level when the money wage rate remains unchanged. Label it 1. Draw an arrow that shows a rise in the price level accompanied by the same percentage rise in the money wage rate and the money prices of other resources. Label it 2. Question content area bottom left Part 1 What is the effect of an increase in the price level when the money wage rate remains unchanged? A. Potential GDP increases. B. Aggregate supply increases. C. Resource prices increase by the same percentage as the increase in the price level. D. The quantity of real GDP supplied increases. . . . Question content area right Part 1 18.0 19.0 20.0 21.0 22.0 85 95 105 115 125 135 145 Real GDP (trillions of 2012 dollars) Price level (GDP price index, 2012=100) Potential GDPAS
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