Answer:
The correct answer is option b.
Explanation:
An increase in the price level will the money wage rate remains the same will cause the aggregate quantity supplied to increase. This happens because we know that the cost of input is not increasing while the price is rising.
According to the law of supply quantity supplied is positively related to the price level. So there will be an upward movement on the same supply curve. This indicates that the quantity of real GDP supplied has increased.
