Exhibit 14A-3 Macro AD-AS Model In Exhibit 14A-3, the self-correction argument is that in the long run competition:
A) from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS.
B) from unemployment workers causes a rightward shift in LRAS.
C) among firms for workers increases nominal wages and this causes a leftward shift in SRAS.
D) among consumers causes an increase in the CPI and a rightward shift in SRAS.

Question

Exhibit 14A-3  Macro AD-AS Model  In Exhibit 14A-3, the self-correction argument is that in the long run competition:
A) from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS. 
B) from unemployment workers causes a rightward shift in LRAS. 
C) among firms for workers increases nominal wages and this causes a leftward shift in SRAS. 
D) among consumers causes an increase in the CPI and a rightward shift in SRAS.

Quizplus · Accepted Answer

The Answer of Exhibit 14A-3  Macro AD-AS Model  In Exhibit 14A-3, the self-correction argument is that in the long run competition:
A) from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS. 
B) from unemployment workers causes a rightward shift in LRAS. 
C) among firms for workers increases nominal wages and this causes a leftward shift in SRAS. 
D) among consumers causes an increase in the CPI and a rightward shift in SRAS.

Exhibit 14A-3 Macro AD-AS Model in Exhibit 14A-3, the Self-Correction