Let me tell you what some other people say, though: 1  The EWGâs Skin Deep Database lists it as a 5-6 (or moderate hazard), but trying to find the studies they used for their rating proved difficult, and the ones I did find were the nebulous âborax or boric acidâ test studies.
1 This is so because, my nominal wages have increased by 10% while the average price level (CPI) has increased by only 5%. 2  Thus today (in 2010) with my higher nominal wage ($1100.00) I can buy more than I could buy last year.
When potential GDP increases from 16 trillion to 17 trillion, the aggregate supply curve shifts rightward from AS0 to AS1. A rise in money wage rate causes price level to increase and decreases aggregate supply. The aggregate supply curve shifts leftward from AS0 to AS2. A rise in money wage rate does not change potential GDP.