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An Economy Adjusts on Its Own to Close an Inflationary

Question 85

Multiple Choice

An economy adjusts on its own to close an inflationary gap because there is


A) pressure on nominal wages to fall and this shifts the SRAS curve rightward.
B) pressure on nominal wages to rise and this shifts the SRAS curve rightward.
C) pressure on nominal wages to fall and this shifts the SRAS curve leftward.
D) pressure on nominal wages to rise and this shifts the SRAS curve leftward.

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