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​ ​ Exhibit 16A-2 Macro AD/AS Models

Question 55

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​ ​ Exhibit 16A-2 Macro AD/AS Models
​
​ ​ Exhibit 16A-2 Macro AD/AS Models ​ As shown in Panel (a) of Exhibit 16A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct? A) ​Competition among firms for workers increases the nominal wage and SRAS shifts rightward. B) ​Long-run equilibrium will be established at Y<sub> 1 </sub> and P<sub> 2 </sub>. C) ​Long-run equilibrium will be established at Y<sub> 1 </sub> and P<sub> 3 </sub>. D) ​Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.
As shown in Panel (a) of Exhibit 16A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?


A) ​Competition among firms for workers increases the nominal wage and SRAS shifts rightward.
B) ​Long-run equilibrium will be established at Y 1 and P 2 .
C) ​Long-run equilibrium will be established at Y 1 and P 3 .
D) ​Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.

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