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After a Period of Sustained Unexpected Inflation,it Is Likely That

Question 3

Multiple Choice

After a period of sustained unexpected inflation,it is likely that the renegotiation of nominal wages will


A) shift the SAS curve downward thereby increasing output.
B) shift the SAS curve upward thereby increasing output.
C) shift the SAS curve upward thereby decreasing output.
D) shift the AD curve downward thereby increasing output.

Correct Answer:

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