If Output Is Below the Natural Rate, Output Will Increase

question 7

Multiple Choice

If output is below the natural rate, output will increase due to a _____ in wages, which leads _____ to shift to the right.

• A) rise, AD
• B) fall, AD
• C) rise, AS
• D) fall, AS

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Definitions:

Autonomous

Having the ability to operate independently or self-govern without external control or influence, often used in reference to machines, systems, or organizations.

Homeless Shelter

A place providing temporary accommodation for people who do not have a permanent home.

Warming Shelters

Temporary shelters provided to homeless or marginalized individuals during the cold weather months to protect them from the harsh conditions.

Isolated Impact

Effects or outcomes that occur in a limited area or scope, without significant broader or systemic implications.