Which of the following best explains how recessionary gaps in the economy are fixed by self-adjustment in
Question:
Which of the following best explains how recessionary gaps in the economy are fixed by self-adjustment in the long run?
The decrease in wages will increase the short-run aggregate supply and increase output to the full employment level.
The increase in wages will decrease the short-run aggregate supply and increase output to higher than the full employment level.
The increase in wages will increase the short-run aggregate supply and increase output to the full employment level.
The decrease in wages will decrease the short-run aggregate supply and decrease output to lower than the full employment level.
The increase in wages will decrease the short-run aggregate supply and increase output to the full employment level.
Expert Answer:
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
