The economy is at its potential Gross Domestic Product when the public correctly anticipates an increase in
Question:
The economy is at its potential Gross Domestic Product when the public correctly anticipates an increase in government spending on goods and services. If the money wage rate is adjusted immediately, then
A.the real Gross Gross Product remains at the potential Beuto Internal Product level, the price level does not change, and the real wage rate increases, in the short run.
B. The real Gross Domestic Product remains at the value of the potential Gross Domestic Product
C. The real Gross Domestic Product and the price level will increase in the short flat, but the wage rate will decrease.
D. the real Gross Domestic Product, the price level, and the real wage rate increase in the short term.
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells , Iris Au , Jack Parkinson