-Based on the data in the table above, in the adjustment towards the long-run equilibrium
A) money wage rates will rise.
B) the aggregate demand curve will shift leftward.
C) the short-run aggregate supply curve will shift leftward.
D) the short-run aggregate supply curve will shift rightward.

Question

-Based on the data in the table above, in the adjustment towards the long-run equilibrium
A) money wage rates will rise. 
B) the aggregate demand curve will shift leftward. 
C) the short-run aggregate supply curve will shift leftward. 
D) the short-run aggregate supply curve will shift rightward.

Quizplus · Accepted Answer

The short-run aggregate supply curve will shift rightward because the increase in money wage rates will lead to an increase in the cost of production, which will in turn lead to a decrease in the quantity of output supplied at any given price level.

-Based on the Data in the Table Above, in the Adjustment