At every current AD/SAS equilibrium point to the right of the LAS curve,the price level is ________ than that expected on average and figured into the wage contracts in force,and thus there is pressure on the SAS curve to shift ________ with wage renegotiations.
A)greater,upward
B)greater,downward
C)less,upward
D)less,downward

Question

Quizplus · Accepted Answer

At every current AD/SAS equilibrium point to the right of the LAS curve, the price level is greater than that expected on average and figured into the wage contracts in force, and thus there is pressure on the SAS curve to shift upward with wage renegotiations.

At Every Current AD/SAS Equilibrium Point to the Right of the LAS