Solved

If the AD Curve Intersects the Short-Run Aggregate Supply Curve

Question 4

Multiple Choice

If the AD curve intersects the short-run aggregate supply curve to the left of the long-run aggregate supply curve, under flexible exchange rates, then the long-run equilibrium position


A) can be attained if labor adjusts its wages downward due to prices being lower than Expected.
B) can be attained by a decrease in government spending.
C) can be attained by contracting the money supply.
D) cannot be attained without a change in technology.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions