Exhibit 14A-4 Macro AD-AS Model

Multiple Choice

Exhibit 14A-4 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.