(Figure: Policy Alternatives) Use Figure: Policy Alternatives. Assume that the economy depicted in panel (a) is in short
Posted: Fri Jul 01, 2022 7:54 am
(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.
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.