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Macro AD-AS Model
In Exhibit 14A-4, the self-correction argument is that in the long run, competition:
A. from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS.
B. from unemployed workers causes a rightward shift in SRAS.
C. among firms for workers increases nominal wages and this causes a leftward shift in SRAS.
D. among consumers causes an increase in the CPI and a rightward shift in SRAS.
Answer: B
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