Exhibit 17-2 Aggregate Demand and Aggregate Supply Curves as Shown

question 56

Multiple Choice

Exhibit 17-2 Aggregate demand and aggregate supply curves As shown in Exhibit 17-2, if people behave according to adaptive expectations theory, an increase in the aggregate demand curve from AD₁ to AD₂ will cause:

• A)labor to adjust nominal wages sluggishly.
• B)the aggregate supply curve to shift from SRAS₁ to SRAS₂
• C)the price level to eventually rise from 100 to 110.
• D)All of these.

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Preferred stock that gives the owner the option of converting those preferred shares into a stated number of common shares.

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