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.
Correct Answer:

Verified
Correct Answer:
Verified
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