aggregate demand though monetary policy may have no effect on output if workers with

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter20: Monetary Policy
Section: Chapter Questions
Problem 12SQP
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Show using an aggregate supply and demand curve diagram, how an initial increase in
aggregate demand though monetary policy may have no effect on output if workers with
“rational expectations” seek wage rises to compensate for the expected higher price level. 

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