Solved

-In the Above Figure, If We Start at and

Question 36

Multiple Choice

-In the above figure, if we start at and , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium? A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward. B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward. C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward. D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward.
-In the above figure, if we start at -In the above figure, if we start at and , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium? A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward. B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward. C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward. D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward. and -In the above figure, if we start at and , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium? A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward. B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward. C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward. D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward. , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium?


A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward.
B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward.
C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward.
D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q31: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5013/.jpg" alt=" -Refer to the

Q33: According to the real business cycle theory,

Q35: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5013/.jpg" alt=" -Suppose the economy

Q128: The Phillips curve shows the relationship between<br>A)the

Q130: Under the rational expectations hypothesis, if wages

Q177: An unexpected decrease in aggregate demand<br>A) causes

Q260: When workers and employers correctly anticipate the

Q265: The idea of policymaking taking place in

Q295: On average, the greater the unexpected decline

Q304: If cyclical unemployment is negative, then<br>A) the