In the accompanying graphs, QP refers to the economy's potential output level. Graph A is constructed on the basic assumption th

Question

ASHA 777 [7]

1 year ago

11

In the accompanying graphs, QP refers to the economy's potential output level. Graph A is constructed on the basic assumption th

at

SAT

1 answer:

viktelen [127] · Answer 1 · 2023-11-26T05:58:30+03:00

The changes in the general price level have no effect on nominal wages. In the graphs that follow, the term "QP" refers to the maximum level of production that the economy is capable of producing. This is further explained below.

<h3>What is the economy?</h3>

Generally, the level of products and services produced and consumed, as well as the amount of money available, in a nation or area.

In conclusion, there is no correlation between changes in price levels and nominal salary changes. In the preceding graphs, the term "QP" refers to the potential production level of the economy.