Exhibit 20A-2  Macro AD/AS Models as Shown in Panel (A)

question 207

Multiple Choice

Exhibit 20A-2  Macro AD/AS Models As shown in Panel (a) of Exhibit 20A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?

• A) Competition among firms for workers increases the nominal wage and SRAS shifts rightward.
• B) Long-run equilibrium will be established at Y₁ and P₂.
• C) Long-run equilibrium will be established at Y₁ and P₃.
• D) Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.

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France and Germany

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Poland

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Borderlands

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National Solidarity

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