Multiple Choice
Figure 8-5
Panel (a) shows an economy's aggregate production function, Panel (b) shows the labor market and Panel (c) shows the economy's long-run aggregate supply curve.
-Refer to Figure 8-5. An upward shift of the aggregate production function would lead to
A) a decrease in the real wage and to a decrease in real GDP.
B) an increase in the real wage and to a decrease in real GDP.
C) a decrease in the real wage and to an increase in real GDP.
D) an increase in the real wage and to an increase in real GDP.
Correct Answer:

Verified
Correct Answer:
Verified
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