The figure above shows an economy's initial Aggregate Supply AS₁ and Potential GDP (Yp) curves, and the new Aggregate Supply curve, AS2. This shift in aggregate supply is mostly likely caused by which of the following? O a. An increase in the price level. O b. A decrease in the nominal wage. O c. An increase in the nominal wage. O d. An increase in the real wage.

The figure above shows an economy's initial Aggregate Supply AS₁ and Potential GDP (Yp) curves, and the new Aggregate Supply curve, AS2. This shift in aggregate supply is mostly likely caused by which of the following? O a. An increase in the price level. O b. A decrease in the nominal wage. O c. An increase in the nominal wage. O d. An increase in the real wage.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 2PA

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