If the money wage rate rises relative to the price level, firms ...

[haleyc112]

If the money wage rate rises relative to the price level, firms ________ the quantity of labor they demand and workers ________ the quantity of labor they supply.
 
  A) increase; increase
  B) increase; decrease
  C) decrease; increase
  D) decrease; decrease

Question 2

In the short-run
 
  A) the aggregate supply curve is upward sloping.
  B) real GDP is always equal to potential GDP.
  C) the money wage rate can change.
  D) the price level does not change.

[Li Jun]

Answer to Question 1

C

Answer to Question 2

A

[haleyc112]

Thanks for the timely response, appreciate it

[rleezy04]

YES! Correct, THANKS for helping me on my review