Use the Following to Answer Questions

question 99

Multiple Choice

Use the following to answer questions:
-(Figure: Monetary Policy and the AD-SRAS Model) Refer to Figure: Monetary Policy and the AD-SRAS Model.If the economy is at point f because of an open market sale by the Bank of Canada and no further monetary policy is implemented,in the long run nominal wages will _____ and _____ will shift to _____,real GDP will _____,and the price level will _____.

• A) increase;SRAS;SRAS';decrease;increase
• B) increase;SRAS;SRAS';increase;decrease
• C) decrease;SRAS';SRAS;increase;decrease
• D) decrease;SRAS';SRAS;decrease;decrease

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Definitions:

Hypothetical Question

A type of query that is based on imagined or theoretical circumstances, often used for speculation or to explore outcomes.

Hearsay Rule

A legal principle that excludes the use of secondhand testimony in court because it is not made under oath or subject to cross-examination.

Spousal Privilege

A legal right that protects spouses from being forced to testify against each other in court.

Present Sense Impression

A legal term referring to an exception to the hearsay rule, allowing a statement describing or explaining an event or condition made while the declarant was perceiving the event or condition, or immediately thereafter, to be admissible as evidence.