Figure 15-3 -As Shown in Figure 15-3,if People Behave According to Adaptive

question 30

Multiple Choice

Figure 15-3

-As shown in Figure 15-3,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 the above.

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