1-If there is an inflationary? gap, the market will transition to long run equilibrium by
A. an increase in SRAS caused by a decrease in the wage rate.
B. a decrease in SRAS caused by an increase in the wage rate.
C. a decrease in SRAS caused by a decrease in the wage rate.
D. an increase in SRAS caused by an inecrease in the wage rate.
2-If the price level rises and the money wage rate remains? constant, the quantity of real GDP supplied? ______ and there is a movement up along the? ______ aggregate supply curve.
A.? increases; short-run
B. does not? change; long-run
C. does not? change; short-run
D. decreases; long-run