Everything Else Held Constant,when Output Is ________ the Natural Rate

question 42

Multiple Choice

Everything else held constant,when output is ________ the natural rate level,wages will begin to ________,decreasing short-run aggregate supply.

• A)above;fall
• B)above;rise
• C)below;fall
• D)below;rise

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Definitions:

Utility

A measure of satisfaction or pleasure that consumers derive from consuming goods or services.

Consumption

The act of using goods and services to satisfy needs and wants, a key concept in economics relating to how goods and services are used.

Satisfaction

The degree of contentment or pleasure experienced from the fulfillment of a desire or the consumption of goods and services.

Marginal Utility

The increased value or pleasure an individual obtains from using another unit of a certain service or good.