Use the Following to Answer Questions

question 102

Multiple Choice

Use the following to answer questions .
Exhibit: Short-run Aggregate Supply
-(Exhibit: Short-run Aggregate Supply) Suppose that the economy is in long-run equilibrium at point A. Now suppose the stock market crashes, significantly reducing household wealth. In the short-run,

• A) the nominal wage rate falls.
• B) unemployment is above its natural level.
• C) there will be pressure on prices to rise.
• D) the short-run aggregate supply curve shifts to the left as firms cut production.

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Definitions:

Beta Waves

Brainwaves that are associated with active, alert, and cognitive processing states of consciousness.

Electroencephalograph (EEG)

A diagnostic tool that records the electrical activity of the brain, important for identifying conditions such as epilepsy.

Sleep Spindles

Bursts of oscillatory brain activity visible on an EEG that occur during stage 2 of sleep and are thought to be involved in processing memory and learning.

Stage 2 Sleep

A period of light sleep before entering deeper sleep stages, characterized by specific brain wave patterns.