-In the Figure Above, the Economy Is at an Equilibrium

question 67

Multiple Choice

-In the figure above, the economy is at an equilibrium with real GDP of $16 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the ________ curve shifts ________ because ________.

• A) aggregate supply; rightward; the money wage rate falls
• B) potential GDP; leftward; the money wage rate falls
• C) aggregate supply; leftward; the money wage rate rises
• D) aggregate demand; rightward; the money wage rate falls
• E) aggregate demand; leftward; the money wage rate rises