Exhibit 30-4 Price level P₂ P₂ P₁ Long Run Aggregate Supply Yp Y₁ Real GDP Short-Run Aggregate Supply Aggregate Demand Refer to the information in the figure shown. If the economy is at Y₁ and no further policy is implemented, in the long run, as a result of the self-correcting mechanism, the Long Run Aggregate Supply curve will shift to the right until potential GDP = Y₁. nominal wages will decrease and shift the Aggregate Demand curve to the left. O nominal wages will decrease and shift the Short Run Aggregate Supply curve to the right. nominal wages will increase and shift the Short Run Aggregate Supply curve to the left.

Exhibit 30-4 Price level P₂ P₂ P₁ Long Run Aggregate Supply Yp Y₁ Real GDP Short-Run Aggregate Supply Aggregate Demand Refer to the information in the figure shown. If the economy is at Y₁ and no further policy is implemented, in the long run, as a result of the self-correcting mechanism, the Long Run Aggregate Supply curve will shift to the right until potential GDP = Y₁. nominal wages will decrease and shift the Aggregate Demand curve to the left. O nominal wages will decrease and shift the Short Run Aggregate Supply curve to the right. nominal wages will increase and shift the Short Run Aggregate Supply curve to the left.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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