Refer to the Graph Given Below

question 117

Multiple Choice

Refer to the graph given below. Suppose an economy moves from point B₃ to point C₃ because of an increase in aggregate demand.Given the scenario, which of the following is likely to occur?

• A)Nominal wages will rise, and profits will decrease, thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to B₄.
• B)Real wages will rise, and profits will decrease, thereby negating the short-run stimulus to production and employment so that the economy moves from C₁ to B₁.
• C)Nominal wages will rise, and profits will decrease, thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to B₃.
• D)Nominal wages will rise, and profits will decrease, thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to C₂.

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Definitions:

Cells

The smallest living units of structure and function.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life with critical roles in gene expression, enzyme function, and cellular structure.

Lipoproteins

Large molecules that are fat-soluble on the inside and water-soluble on the outside and carry lipids such as cholesterol and triglycerides through the bloodstream.

Diverticular Disease

A condition characterized by the formation of small pouches in the wall of the colon.