Incorrect answer D Nom no change Real no change Correct answer C Nom increase

Incorrect answer d nom no change real no change

This preview shows page 2 - 3 out of 3 pages.

change nominal and real GDP in which of the following ways? Incorrect answer: D. Nom, no change Real, no change Correct answer: C. Nom, increase Real, No change I went wrong because i should have drawn a graph. An increase in nominal wages does not mean you are making more money if the prices of all items go up. In this case you would be making the same amount of real income because your money still buys the same amount of goods. Pg. 324 9. How does an increase in agg demand affect price level and real wages in the short run? Incorrect answer:C. PL increase, Real wage increase Correct answer: B PL increase, Real wage decrease Again I went wrong because i did not draw a graph. If i did draw a graph I would be able to see that and increase in demand would increase the price level and increase RGDP which would cause the Real Wage to drop. Citation, we went over this one in class 18. Under rational expectiaons theory, an announced expansion in the money supply will change the nominal and real GDP in which of the following ways. Incorrect answer: A. Nom increase, Real increase Correct answer: C. Nom increase, Real No change
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 3 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes