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why does short run aggregate supply curve shift to the left in the long run foll

ID: 1229152 • Letter: W

Question

why does short run aggregate supply curve shift to the left in the long run folllowing an increase in aggregate demand?

a.workers and firms adjust their expectations of wages and proces upward and they push for higher wages and prices
b. workers and firms adjust their expectations of wages and proces upward and they accept lower wages and proces
c. workers and firms adjust their expectations of wages and prices downward and they accept lower wages and proces
d. workers and firms adjust their expectations of wages and proces downward and they push for higher wages and prices

Explanation / Answer

Answer is c c. workers and firms adjust their expectations of wages and prices downward and they accept lower wages and proces