If the AD Curve Intersects the Short-Run Aggregate Supply Curve

question 4

Multiple Choice

If the AD curve intersects the short-run aggregate supply curve to the left of the long-run aggregate supply curve, under flexible exchange rates, then the long-run equilibrium position

• A) can be attained if labor adjusts its wages downward due to prices being lower than Expected.
• B) can be attained by a decrease in government spending.
• C) can be attained by contracting the money supply.
• D) cannot be attained without a change in technology.

---

Definitions:

Sclera

The white outer layer of the eyeball, providing protection and form.

Retina

is the light-sensitive layer of tissue located at the back of the eye, responsible for converting light rays into neural signals for vision.

Lens

A transparent structure in the eye that focuses light onto the retina to produce clear images.

Light

Electromagnetic radiation within a certain portion of the electromagnetic spectrum, visible to the human eye and responsible for the sense of sight.