-In the Above Figure, If We Start at and

question 36

Multiple Choice

-In the above figure, if we start at and , and the money supply increases unexpectedly, what causes the economy to get to the long-run equilibrium?

• A) People's expectations will revise after a short-run gain in output, wages will fall, and SRAS will shift leftward.
• B) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift rightward.
• C) People's expectations will revise after a short-run loss in output, wages will fall, and SRAS will shift leftward.
• D) People's expectations will revise after a short-run gain in output, wages will rise, and SRAS will shift leftward.

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Definitions:

Deemed to Accept

An assumed or implicit acceptance of terms or conditions by conduct or by failing to object.

Reasonable Opportunity

A fair and adequate chance given to a party to perform an action or fulfill a condition within legal or contractual obligations.

Destination Contract

A contract specifying that the sale of goods will be completed upon their arrival at a specified location.

F.O.B. City

Refers to "Free on Board" at a certain city, indicating that the seller is responsible for the goods until they are loaded onto a transport vehicle at a specified location.