Use the Following to Answer Questions

question 231

Multiple Choice

Use the following to answer questions :
Figure: Output Gap
-(Figure: Output Gap) Look at the figure Output Gap. If the economy is at Y₁ as a result of expansionary monetary policy and no further policy is implemented, in the long run nominal wages will _____ and shift the short-run aggregate supply curve to the _____, which will _____ real output.

• A)increase; left; decrease
• B)increase; right; increase
• C)decrease; left; decrease
• D)decrease; right; increase

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Definitions:

Drywall

A building material used for making walls and ceilings, consisting of large flat sheets of gypsum board that is easy to install and paint.

Square Feet

A unit of area measurement used primarily in the United States, equal to the area of a square with sides one foot long.

Premise

A statement or proposition that serves as the basis for an argument or from which a conclusion is drawn.

Introduces

The act of presenting something or someone for the first time, or bringing something into use or operation.