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-In the Above Figure, If We Start at and

Question 201

Multiple Choice

-In the above figure, if we start at and , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium? A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward. B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward. C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward. D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward.
-In the above figure, if we start at -In the above figure, if we start at and , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium? A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward. B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward. C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward. D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward. and -In the above figure, if we start at and , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium? A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward. B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward. C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward. D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward. , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium?


A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward.
B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward.
C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward.
D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward.

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