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QUESTION 9 Congratulations! You have been appointed an economic policy adviser to the United States, You are told that the economy is significantly above full
QUESTION 9 Congratulations! You have been appointed an economic policy adviser to the United States, You are told that the economy is significantly above full amplyoment GDP. Based on this information, how can the economy would adjust to reach LR-SR equilibrium (Classical View)7 The economy will experience low unemployment rate, pushing wages up, and increasing the prices of a key input (labor). starting the SAS to the left (up). The economy wil experience high unemployment rate, pushing wages down, and reducing the prices of a key input (labor), shifting me SAS to the right (down) The economy will expedience low unemployment rate, decreasing income, which will eventually shift the AD to the left @) The economy will experience low unemployment rate, pushing wages up, and increasing the prices of a key input gabor), shiting the SAS to the right (down), QUESTION 10
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