en the economy is experiencing an inflationary gap, the aggregate supply curve Will shift to the right as nominal wages increase, which induces inflation and restores potential output Vill shift to the left which lowers prices and restores potential output Will shift to the left as nominal wages increase, which induces inflation and restores potential output Will not shift, as the economy will adjust to potential output in the long run

en the economy is experiencing an inflationary gap, the aggregate supply curve Will shift to the right as nominal wages increase, which induces inflation and restores potential output Vill shift to the left which lowers prices and restores potential output Will shift to the left as nominal wages increase, which induces inflation and restores potential output Will not shift, as the economy will adjust to potential output in the long run

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Pls help with below homework.
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