Use the Following to Answer Questions

question 11

Multiple Choice

Use the following to answer questions .
Exhibit: Responses to a Decrease in Aggregate Demand
-(Exhibit: Responses to a Decrease in Aggregate Demand) The economy is initially in equilibrium at point (1) . Now suppose a reduction in the money supply causes aggregate demand to fall to AD₂. The below potential output level of Y₂ will exist as long as

• A) policymakers refrain from using discretionary policies.
• B) workers fail to recognize that their real wages have increased and that they need to accept lower nominal wages.
• C) economic agents do not respond to falling prices by increasing aggregate demand back to AD₁.
• D) producers do not increase the price of their output.

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Definitions:

Demotivate People

Actions or conditions that lead to a decrease in an individual's motivation, enthusiasm, or willingness to engage in activities or achieve goals.

Job Characteristics Model

A framework suggesting that job design should consider five core dimensions (skill variety, task identity, task significance, autonomy, and feedback) to enhance employee motivation, satisfaction, and performance.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Telecommuting

A work arrangement in which employees do not commute to a central place of work but rather perform their job duties remotely, typically from home, using digital communication tools.