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:

Verified
Correct Answer:
Verified
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