This graph shows the short-run aggregate supply curve (SRAS) of a hypothetical economy where the currency is the dollar.

[answerhappygod]

This Graph Shows The Short Run Aggregate Supply Curve Sras Of A Hypothetical Economy Where The Currency Is The Dollar 1 (13.11 KiB) Viewed 9 times

This Graph Shows The Short Run Aggregate Supply Curve Sras Of A Hypothetical Economy Where The Currency Is The Dollar 2 (29.59 KiB) Viewed 9 times

This Graph Shows The Short Run Aggregate Supply Curve Sras Of A Hypothetical Economy Where The Currency Is The Dollar 3 (31.87 KiB) Viewed 9 times

This graph shows the short-run aggregate supply curve (SRAS) of a hypothetical economy where the currency is the dollar. Last year, the economy was producing at point A. The price level was 135 and the quantity of real GDP supplied was $300 billion. This year, the economy is producing at point B. The price level has risen to 145 and the quantity of real GDP supplied has risen to $500 billion and nominal wages were constant as the price level changed. Government officials are confused about why the quantity of output moved from point A to point B, and they ask you for help.

PRICE LEVEL 160 155 150 145 140 135 130 125 120 0 I 100 Short-Run Aggregate Supply I SRAS 200 400 300 500 REAL GDP (Billions of dollars) 800 700 600 (?)

omework: Aggregate Demand and Aggregate Supply (Ch 08) 125 120 0 100 200 300 400 500 000 700 800 REAL GDP (Billions of dollars) Since nominal wages were constant as the price level changed, you explain that an increase in the price level leads to This, in turn, leads to which of the following? Workers mistakenly believe that their real wages have fallen and supply less labor. O Firms hire fewer workers. Firms hire more workers. O Workers mistakenly believe that their real wages have risen and supply more labor. Ultimately, an increase in the price level leads to being produced in the short run. Grade It Now an increase. no change a decrease STARS C in real wages. Save & Continue Continue without saving