Macro AD-AS Model in Exhibit 14A-4, the Self-Correction Argument Is That in the That

Multiple Choice

  Macro AD-AS Model
In Exhibit 14A-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.