A) a Movement From $x _ { 1 }$ To $x _ { 2 }$

question 53

Multiple Choice

• A) a movement from \(x _ { 1 }\) to \(x _ { 2 }\) in the short run, and the unemployment rate decreases, followed by a shift from \(x _ { 2 }\) to \(y _ { 1 }\) as nominal wages rise in the long run.
• B) a movement from \(x _ { 1 }\) to \(x _ { 3 }\) in the short run, and the unemployment rate decreases, followed by a shift from \(x _ { 3 }\) to \(x _ { 1 }\) as output rises in the long run.
• C) \[\text { a movement from } x _ { 1 } \text { to } y _ { 1 } \text { in the short run and back to } x _ { 1 } \text { in the long run. }\]
• D) \[\text { no change in the short run, but a shift from } x _ { 1 } \text { to } y _ { 1 } \text { in the long run. }\]

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