Question

If the price level and the money wage rate rise by the same​ percentage, the quantity of real gdp supplied​ ______ and there is a movement up along the​ ______ aggregate supply curve.

Answer 1

There is no change in the quantity of real GDP supplied and a movement occurs up along the economy's supply schedule in the long‐run that is the Long-run Aggregate Supply (LAS) curve if the price level and the money wage rise by the same percentage.