When Output Is Below Its Full-Employment Level, the Short-Run Aggregate

question 29

Multiple Choice

When output is below its full-employment level, the short-run aggregate supply will shift down and to the right because

• A)the expected price level will be below the actual price level.
• B)workers' wages will decline.
• C)prices of nonlabor inputs will rise.
• D)workers' wages will rise.

---

Definitions:

Intimidation

The act of making someone fearful or overawed, especially in order to influence their behavior or decisions.

Intentional Infliction

The deliberate action by one party meant to cause distress or harm to another party.

Mental Suffering

A state of distress or discomfort resulting from mental or emotional strain.

Personal Information Protection and Electronic Documents Act

A Canadian federal law that sets out how private sector organizations can collect, use, and disclose personal information in the course of commercial business.