Question: Multiple Choice Question In the long run, when the price level rises or falls, real output will do which of the following? Move in the
Multiple Choice Question
In the long run, when the price level rises or falls, real output will do which of the following?
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
Rise or fall along with the general price level, because nominal wages stay fixed
Shift in the direction of the shortrun aggregate supply curve
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