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15 As an costly moves up along its aggregate supply curve The money wage rate and the prices of other resources remain constant. & The money wage rate and the money prices of other resources change by the same Potential GDP Increases d The real wage remains constant. 16. Which of the following is a characteristic of monopolistic competition? a Product differentiation. D. Brand loyalty. Advertising. All of the above. 17. Consider what is included in the measurement of GDP, and then choose the correct statement & We indude a measure of political freedom and social justice In GDP, b. The underground economy, which is included In GDP is difficult to describe but easy to measure. C We include a measure of good health and life expectancy in GDP: d. The underground economy which is not Included in GDP is the part of the economy that is hidden from the view of the government. 18. Stagflation is a situation where a. Inflation rises as unemployment falls. b. Inflation and unemployment rise together C. Inflation does not change as unemployment falls. d. None of the above. 19. Real GDP a. Accurately measures environmental quality and political reedom, but it does not accurately measure underground economic activity. b. Accurately measures inflation and environmental quality but does not accurately measure political freeom and social jutice, . Accurately measures household production , but it does not accurately measure health and life expectancy. d. Does not accurately measure leisure time, environment quality, or political freedom and social justice