A rise in the money wage rate shifts theO A. potential GDP curve rightward.B. AS curve rightward.O C. AD curve rightward.D. AD curve leftward.O E. AS curve leftward.

The correct option is B That is AS curve rightward.

Answered: A rise in the money wage rate shifts…

A rise in the money wage rate shifts the O A. potential GDP curve rightward. O B. AS curve rightward. O C. AD curve rightward. O D. AD curve leftward. O E. AS curve leftward.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter25: The Keynesian Perspective

Section: Chapter Questions

Problem 3SCQ: Use the AD/AS model to explain bow an inflationary gap occurs, beginning from the initial...

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Concept explainers

Labor Force Participation Rate analysis

The labor force participation rate analysis calculates the percentage of the working-age population either employed or actively seeking work. It can be anyone in the age category of 16 to 64, on the condition that they are not institutionalized. A high labor force participation rate shows that more people are employed and contributing their wages to the economy, making it a healthy economy. It also shows that there are more people actively looking for employment leading to more hiring options for employers. On the other hand, a low labor force participation rate shows a low number of people employed or looking for work. This leads to an economic setback with fewer wages going into the economy. In such a scenario, employers might have to cut back on profits, lay off employees, or stop the process of hiring.

Question

A rise in the money wage rate shifts the
O A. potential GDP curve rightward.
B. AS curve rightward.
O C. AD curve rightward.
D. AD curve leftward.
O E. AS curve leftward.

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