Look at the following Figure. If the economy is at point E
Look at the following Figure....
Look at the following Figure. If the economy is at point E
Look at the following Figure. If the economy is at point E, there is a(n) (Inflationary/ Recessionary) gap with (High/Low) unemployment. This gap will be eliminated because there is (Upward/downward) pressure on wages, shifting the (SRAS, LRAS, AD) to the (Right/Left) . So we will go to the potential out level and it causes a(n) (Increase/Decrease/No Changes) in the level of prices and real wages and real prices will be (Increase/Decrease/ Unchanged).
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