(Figure: Policy Alternatives) Use Figure: Policy Alternatives. Assume that the economy depicted in panel (a) is in short

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(Figure: Policy Alternatives) Use Figure: Policy Alternatives.Assume that the economy depicted in panel (a) is in short-runequilibrium at a real GDP level of Y1. Theeconomy will correct itself:
in the long run as wages fall.
in the short run as wages rise.
because the aggregate demand curve shifts.
rapidly, without the use of fiscal policy.