Figure 9-1
In , which of the following correctly labels the curves in the aggregate demand/aggregate supply model?
a.
(1) is LRAS, (2) is SRAS, and (3) is AD.
b.
(1) is SRAS, (2) is LRAS, and (3) is AD.
c.
(1) is AD, (2) is SRAS, and (3) is LRAS.
d.
(1) is LRAS, (2) is AD, and (3) is SRAS.
a
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Assuming that (1) labor supply is perfectly inelastic (vertical), and (2) immigrants and skilled labor are complements, an increase in unskilled immigrant labor ___________ the real wages of unskilled labor and __________the real wages of skilled labor
a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases
Monetarists argue that the long-run Phillips curve is negatively sloped
a. True b. False Indicate whether the statement is true or false