-The Table Above Gives the Aggregate Demand and Aggregate Supply

question 368

Multiple Choice

$$\begin{array}{l}\text { Real GDP supplied }\\\begin{array} { | l | l | l | l | } \hline \text { Price level } & \begin{array} { l } \text { Real GDP } \\\text { demanded } \\\text { (dollars) }\end{array} & \begin{array} { l } \text { Short run } \\\text { (dollars) }\end{array} & \begin{array} { l } \text { Long run } \\\text { (dollars) }\end{array} \\\hline 90 & 700 & 300 & 600 \\\hline 100 & 600 & 400 & 600 \\\hline 110 & 500 & 500 & 600 \\\hline 120 & 400 & 600 & 600 \\\hline\end{array}\end{array}$$
-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. Lotus Land is in short-run macroeconomic equilibrium. In the long run, if aggregate demand does not change then Lotus Land will return to full-employment as____________ .

• A) businesses cut their imports
• B) the money wage rate falls
• C) the government cuts taxes
• D) the money wage rate rises

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Definitions:

Incremental Improvements

Small, gradual changes or enhancements made to a process, product, or service to improve efficiency, quality, or performance.

Consortium

A group of companies, universities, or other organizations that collaborate on a common project or share resources to achieve a common goal.

OD Efforts

Initiatives taken as part of Organization Development, aimed at improving organizational effectiveness, health, and capacity through planned interventions.

Blue-Collar Workers

Employees who perform manual labor or work in production, manufacturing, and maintenance sectors, typically requiring physical work.