In the short-run, a rise in the money wage rate leads to
A. an increase in the price level and an increase in real GDP.
B. an increase in the price level and a decrease in real GDP.
C. an increase in the price level, but no change in real GDP.
D. no change in the price level, but an increase in real GDP.
Answer:B
In the short-run, a rise in the money wage rate leads to
A. an increase in the price level and an increase in real GDP. B. an increase in the price level and a decrease in real GDP. C. an increase in the price level, but no change in real GDP. D. no change in the price level, but an increase in real GDP.