In the short run, if there is an increase in the money wage rate, then
A. short-run aggregate supply increases and the price level rises.
B. short-run aggregate supply decreases and the price level rises.
C. aggregate demand decreases and the price level falls.
D. aggregate demand increases and the price level rises.
Answer:B
In the short run, if there is an increase in the money wage rate, then
A. short-run aggregate supply increases and the price level rises. B. short-run aggregate supply decreases and the price level rises. C. aggregate demand decreases and the price level falls. D. aggregate demand increases and the price level rises.