the economy is self-regulating and in a recessionary gap, what happens? a. Wages rise, the SRAS curve shifts leftward, and both Real GDP and the price level rise. b. Wages fall, the SRAS curve shifts leftward, the price level rises, and Real GDP falls. c. Wages fall, the SRAS curve shifts rightward, and both the price level and Real GDP fall. d. Wages fall, the SRAS curve shifts rightward, the price level falls
the economy is self-regulating and in a recessionary gap, what happens? a. Wages rise, the SRAS curve shifts leftward, and both Real GDP and the price level rise. b. Wages fall, the SRAS curve shifts leftward, the price level rises, and Real GDP falls. c. Wages fall, the SRAS curve shifts rightward, and both the price level and Real GDP fall. d. Wages fall, the SRAS curve shifts rightward, the price level falls
Chapter22: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 16P
Related questions
Question
the economy is self-regulating and in a recessionary gap, what happens?
a. |
Wages rise, the SRAS curve shifts leftward, and both Real |
|
b. |
Wages fall, the SRAS curve shifts leftward, the price level rises, and Real GDP falls. |
|
c. |
Wages fall, the SRAS curve shifts rightward, and both the price level and Real GDP fall. |
|
d. |
Wages fall, the SRAS curve shifts rightward, the price level falls, and Real GDP rises. |
|
e. |
none of the above |
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