Exhibit 14A-4  Macro AD-AS Model in Exhibit 14A-4, the Self-Correction

question 38

Multiple Choice

Exhibit 14A-4  Macro AD-AS Model In Exhibit 14A-4, the self-correction argument is that in the long run competition:

• A) from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS.
• B) from unemployed workers causes a rightward shift in SRAS.
• C) among firms for workers increases nominal wages and this causes a leftward shift in SRAS.
• D) among consumers causes an increase in the CPI and a rightward shift in SRAS.

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