If the Unemployment Rate Is Below the Natural Rate, Then

question 50

Multiple Choice

If the unemployment rate is below the natural rate, then we expect to see

• A) falling wages, causing the short-run aggregate supply curve to shift up.
• B) falling wages, causing the short-run aggregate supply curve to shift down.
• C) increasing wages, causing the short-run aggregate supply curve to shift up.
• D) increasing wages, causing the short-run aggregate supply curve to shift down.

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