When Workers Negotiate Higher Wages but Monetary Policy Is Accommodative

question 34

Multiple Choice

When workers negotiate higher wages but monetary policy is accommodative, the resulting decrease in equilibrium output is due to a shift in _____, while the long-run return to the natural rate of output is due to a shift in

• A) AD, AD.
• B) AD, AS.
• C) AS, AD.
• D) AS, AS.

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