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Figure: Monetary Policy and the AD-SRAS

Question 199

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Use the following to answer questions:
Figure: Monetary Policy and the AD-SRAS Model  Use the following to answer questions: Figure: Monetary Policy and the AD-SRAS Model   -(Figure: Monetary Policy and the AD-SRAS Model)  Refer to Figure: Monetary Policy and the AD-SRAS Model. If the economy is at point f because of an open market sale by the Federal Reserve and no further monetary policy is implemented, in the long run nominal wages will _____ and _____ will shift to _____, real GDP will _____, and the price level will _____. A)  increase; SRAS; SRAS'; decrease; increase B)  increase; SRAS; SRAS'; increase; decrease C)  decrease; S \prime ; SRAS; increase; decrease D)  decrease; S \prime ; SRAS; decrease; decrease
-(Figure: Monetary Policy and the AD-SRAS Model) Refer to Figure: Monetary Policy and the AD-SRAS Model. If the economy is at point f because of an open market sale by the Federal Reserve and no further monetary policy is implemented, in the long run nominal wages will _____ and _____ will shift to _____, real GDP will _____, and the price level will _____.


A) increase; SRAS; SRAS'; decrease; increase
B) increase; SRAS; SRAS'; increase; decrease
C) decrease; S \prime ; SRAS; increase; decrease
D) decrease; S \prime ; SRAS; decrease; decrease

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