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What is the effect of a rise in the money wage rate when the economy is at potential GDP? Question content area bottom Part 1
What is the effect of a rise in the money wage rate when the economy is at potential GDP? Question content area bottom Part 1 A rise in the money wage rate when the economy is at potential GDP _______. A. does not change aggregate supply but decreases production B. decreases aggregate supply because a rise in the money wage rate increases costs, so firms employ fewer workers C. does not change potential GDP but increases real GDP along the AS curve. D. decreases potential GDP because the full-employment quantity of labor decreases
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