Exhibit 11-6 
-In Exhibit 11-6, long-run equilibrium would be established by
A) an increase in short-run aggregate supply to remove the expansionary gap
B) a decrease in short-run aggregate supply to remove the expansionary gap
C) a decrease in short-run aggregate supply to remove the contractionary gap
D) an increase in short-run aggregate supply to remove the contractionary gap
E) a leftward shift of the aggregate demand curve
Correct Answer:
Verified
Q103: Wage agreements may cause costs to be
Q106: The amount by which actual output falls
Q121: As a contractionary gap is closed in
Q125: Which of the following would be evidence
Q127: Exhibit 11-7 Q128: As a contractionary gap is closed in Q130: As actual output falls below the potential Q134: If the expected price level exceeds the Q134: Exhibit 11-6 Q138: A contractionary gap may be closed in![]()
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