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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 potential GDP because the full-employment quantity of labor decreases C. does not change potential GDP but increases real GDP along the AS curve. D. decreases aggregate supply because a rise in the money wage rate increases costs, so firms employ fewer workers
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