Exhibit 16A-2 Macro AD/AS Models
As shown in Panel (a) of Exhibit 16A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?
A) Competition among firms for workers increases the nominal wage and SRAS shifts rightward.
B) Long-run equilibrium will be established at Y 1 and P 2 .
C) Long-run equilibrium will be established at Y 1 and P 3 .
D) Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.
Correct Answer:
Verified
Q136: Which of the following would cause a
Q137: Exhibit 10A-1 Aggregate demand and supply
Q138: In the long run, wages and
Q139: A decrease in nominal incomes cause
Q140: Long-run full-employment equilibrium assumes:
A) a downward-sloping production
Q142: Exhibit 10A-1 Aggregate demand and supply
Q143: Exhibit 10A-6 Aggregate demand and supply model
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents