Use the Following to Answer Questions:
Figure: Monetary Policy and the AD-SRAS

question 153

Multiple Choice

Use the following to answer questions:
Figure: Monetary Policy and the AD-SRAS Model
-(Figure: Monetary Policy and the AD-SRAS Model) Refer to Figure: Monetary Policy and the AD-SRAS Model. If the economy is at point f because of an open market sale by the Federal Reserve and no further monetary policy is implemented, in the long run nominal wages will _____ and _____ will shift to _____, real GDP will _____, and the price level will _____.

• A) increase; SRAS; SRAS'; decrease; increase
• B) increase; SRAS; SRAS'; increase; decrease
• C) decrease; S\(\prime\); SRAS; increase; decrease
• D) decrease; S\(\prime\); SRAS; decrease; decrease

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