According to the Monetarists, After an Initial Increase in Aggregate

question 8

Multiple Choice

According to the monetarists, after an initial increase in aggregate demand,

• A) short-run aggregate supply curve will tend to shift leftward, reflecting the effect of higher wages adjusting in the long run.
• B) short-run aggregate supply curve will tend to shift leftward, reflecting the effect of lower wages adjusting in the long run.
• C) aggregate demand curve will tend to shift rightward, reflecting the effect of income adjusting in the long run.
• D) aggregate demand curve will tend to shift lower, reflecting the effect of price level adjusting in the long run.

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Definitions:

Triplet

A splitting pattern in NMR spectroscopy, where a peak is divided into three distinct components, often due to two equivalent neighboring nuclei.

IR

Infrared spectroscopy, a technique used to identify and study chemicals through the interaction of infrared radiation with molecular vibrations.

Singlet

A state in which all electrons in an atom or molecule are paired, resulting in no net spin.

Ppm

Short for parts per million, a unit of measurement used to denote the concentration of a substance in a solution or mixture.