________ decreases aggregate supply.
A) A rise in the money wage rate
B) An increase in potential GDP
C) A fall in the money wage rate
D) An increase the quantity of capital
E) A rise in the price level
Question 2
Which is true concerning U-2?
i. It does not count marginally attached workers as unemployed.
ii. It counts as unemployed workers who were laid off.
iii. It is smaller than U-3.
A) i only B) i and iii C) i and ii D) i, ii and iii E) ii and iii