Use the Following to Answer Questions

question 103

Multiple Choice

Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2) Suppose the economy is initially at K. Which of the following statements best explains how the economy responds to restore long-run macroeconomic equilibrium?

• A) Over time, the aggregate demand curve will shift to the right until long-run equilibrium is restored at J and the gap is closed.
• B) Rising unemployment puts pressure on nominal wages to fall. The SRAS curve shifts right to SRAS₁ closing the gap at H.
• C) In response to rising prices, firms will increase production moving along SRAS₂ until long- run equilibrium is restored at J and the gap is closed.
• D) Rising unemployment puts pressure on nominal wages to fall. Firms employ more workers moving along SRAS₂ until long-run equilibrium is restored at J and the gap is closed.

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Job Insecurity

A feeling or perception of uncertainty about the future of one's job, often leading to stress or anxiety.

Scheduling

The process of arranging, controlling, and optimizing work and workloads, often in a time-bound manner.

Nontraditional Occupations

Jobs or professions where individuals from one gender comprise less than 25% of the workforce, challenging traditional gender roles.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.