In the Fooling Model,AD/SAS Equilibria to the Right of LAS

question 116

Multiple Choice

In the fooling model,AD/SAS equilibria to the right of LAS are unstable because ________ nominal wages shift ________.

• A)falling,AD downward
• B)falling,SAS downward
• C)rising,AD upward
• D)rising,SAS upward

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