At Every Current AD/SAS Equilibrium Point to the Left of the LAS

question 178

Multiple Choice

At every current AD/SAS equilibrium point to the left of the LAS curve,the price level is ________ than that expected on average and figured into the wage contracts in force,and thus there is pressure on the SAS curve to shift ________ with wage renegotiations.

• A)greater,upward
• B)greater,downward
• C)less,upward
• D)less,downward

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