-In the Above Figure, Suppose That the Economy Is at Point

question 86

Multiple Choice

-In the above figure, suppose that the economy is at point A when foreign countries begin an expansion and buy more Australian- made goods. In the short run,this change creates a movement
to point ________ and an eventual increase in ________.

• A)D; money wage rates
• B)D; the natural unemployment rate
• C)B; money wage rates
• D)B; the natural unemployment rate