​   Macro AD-AS Model

Multiple Choice

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  Macro AD-AS Model
In Exhibit 10A-4, the self-correction argument is that in the long run, competition:

A) from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS.
B) from unemployed workers causes a rightward shift in SRAS.
C) among firms for workers increases nominal wages and this causes a leftward shift in SRAS.
D) among consumers causes an increase in the CPI and a rightward shift in SRAS.