Over time, contractionary monetary policy _____ nominal wages and causes the short-run aggregate supply curve to shift _____.
A) lowers; leftward
B) raises; rightward
C) lowers; rightward
D) raises; leftward
Correct Answer:
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Q170: If the economy is at potential output
Q171: If the economy is at potential output
Q172: If the economy is at potential output
Q173: When actual output is above potential output,
Q174: Use the following to answer questions:
Figure: Monetary
Q176: If the economy is at potential output
Q177: Contractionary monetary policy causes _ in the
Q178: An increase in the money supply causes
Q179: Use the following to answer questions:
Figure: Monetary
Q180: Suppose that the economy is operating at
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