Use the Following to Answer Questions

question 114

Multiple Choice

Use the following to answer questions .
Exhibit: AD-AS and the Inflation-Unemployment Cycle
-(Exhibit: AD-AS and the Inflation-Unemployment Cycle) If the economy is in equilibrium at point 3,

• A) it will most likely stay there for an indeterminate period.
• B) the SRAS will most likely shift to the left because of firms and workers asking for higher prices and wages.
• C) it will move to point 5 because of a shift in the aggregate supply curve from SRAS₁ to SRAS₂.
• D) it will move to point 2 because the aggregate demand curve is likely to shift left in response to higher prices.

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Definitions:

Flexible Organizational Structure

An adaptable configuration within an organization that facilitates response to changes in the environment or internal demands.

Span of Control

The number of individuals or resources one manager or leader directly supervises or oversees.

Formalization

The extent to which an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated.

Creativity

The ability to produce original and valuable ideas or solutions.