Multiple Choice
Figure 15-2
-Refer to Figure 15-2.Ceteris paribus,an increase in the number of workers and firms adjusting to having previously underestimated the price level would be represented by a movement from
A) SRAS₁ to SRAS₂.
B) SRAS₂ to SRAS₁.
C) point A to point B.
D) point B to point A.
Correct Answer:
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A)firms often cut nominal