Exhibit 20A-2 Macro AD/AS Models 
As shown in Panel (a) of Exhibit 20A-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 Y1 and P2.
C) Long-run equilibrium will be established at Y1 and P3.
D) Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.
Correct Answer:
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Q9: Exhibit 20A-1 Policy Alternatives Q11: Exhibit 20A-2 Macro AD/AS Models Q12: Exhibit 20A-1 Policy Alternatives Q13: Exhibit 20A-2 Macro AD/AS Models Q14: Assume the economy is experiencing an Q15: Exhibit 20A-2 Macro AD/AS Models Q157: Classical theory advocates _ policy and Q171: Assume the economy is experiencing an Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
