A Sudden,unexpected Increase in the Economy's Prevailing Wage Level Due

question 1

Multiple Choice

A sudden,unexpected increase in the economy's prevailing wage level due to a general strike threat would

• A) shift the aggregate demand curve out and push equilibrium prices down
• B) shift the aggregate demand curve in and push equilibrium output down
• C) shift the short run aggregate supply curve in and push equilibrium prices up
• D) shift the Phillips Curve in and increase the natural rate of unemployment
• E) shift the long run aggregate supply curve out and push equilibrium prices down

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