Question: In the long run, when the price level rises or falls, real output will do which of the following? Multiple choice question. Rise or fall
In the long run, when the price level rises or falls, real output will do which of the following? Multiple choice question. Rise or fall along with the general price level, because nominal wages stay fixed Shift in the direction of the short-run aggregate supply curve Move in the direction opposite the price level, because nominal wages stay fixed Stay the same, because nominal wages also rise or fall with the price level
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
