Question 21 (3 points)From the list on your right select the letter that contains the word, phrase, name, etc that best matches the word, phrase, name, etc listed on the left.
Left:
Real Balance (wealth) effect
Sticky wages
The AD curve intersects the SRAS curve to the left of the LRAS curve
LRAS curve
Island of Puerto Rico ‘destroyed’ by Hurricane Maria
Duration: 3:07 User: n/a Added: 9/20/17
Right:
1. A decline in the overall price level improves the purchasing power of monetary wealth leading to increased spending.
2. AD curve shifts to the left
3. Possible decline in Chinese import from the U.S.
4. The level of Real GDP is fixed at a given amount regardless of the price level
5. A rightward movement along the AD curve to a lower level of real GDP demanded
6. Possible increase in U.S. export to China
7. No matter what the price level is, real wages remain constant.
8. Inflationary gap is observed
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