Multiple Choice
(Figure: Aggregate Supply) Use Figure: Aggregate Supply. If the economy is at point E, nominal wages will _____, and the short-run aggregate supply curve will shift _____ until actual output is _____ potential output.
A) increase; left; equal to.
B) increase; left; equal to
C) increase; right; greater than
D) increase; right; greater than.
E) decrease; right; equal to
F) decrease; right; equal to.
G) decrease; right; less than.
H) decrease; right; less than
Correct Answer:

Verified
Correct Answer:
Verified
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