Use the Following to Answer Questions

question 71

Multiple Choice

Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1) Suppose the economy is initially at A. Now suppose an increase in government purchases shifts the aggregate demand curve to AD₂. Which of the following is false about the economy after it adjusts to its new long-run equilibrium?

• A) Nominal wages increase.
• B) The price level rises to P_d.
• C) Firms employ more workers than in the short-run equilibrium.
• D) There is some frictional and structural unemployment.

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White Americans

Individuals residing in the United States who identify as being of European, Middle Eastern, or North African descent.

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A racial or ethnic group in the United States with origins in any of the Black racial groups of Africa, especially those who are descendants of enslaved Africans brought to the U.S.

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