In the Fooling Model,suppose That from an Initial AD/SAS/LAS Equilibrium

question 97

Multiple Choice

In the fooling model,suppose that from an initial AD/SAS/LAS equilibrium a sudden expansion of aggregate demand occurs.With fooling,we would find employment and the actual real wage in the labor market diagram by moving

• A)"northeast" along the labor supply curve.
• B)"northwest" along the labor demand curve.
• C)"southeast" along the labor demand curve.
• D)"southwest" along the labor supply curve.

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