Refer to the Diagram Below

question 73

Multiple Choice

Refer to the diagram below. Assume that the nominal wages of workers in an economy are initially set on the basis of the price level P₂ and that the economy initially is operating at the full-employment level of output Q_f.In the short run, cost-push inflation could best be shown by a:

• A)leftward shift of the aggregate supply curve from AS₂ to AS₃.
• B)movement from point b to point c on AS₂.
• C)movement from point b point a on AS₂.
• D)rightward shift of the aggregate supply curve from AS₂ to AS₁.

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Definitions:

Cosmopolitanism

An ideology that all human beings belong to a single community, based on a shared morality, beyond individual nation-states or cultural identities.

Intersectionality

A framework for understanding how various aspects of a person's social and political identities (race, gender, class, sexuality, etc.) combine to create different modes of discrimination and privilege.

Pan-Ethnic Groups

Broad categories that group together smaller ethnic groups based on common cultural, geographic, or racial traits.

Institutional Racism

A form of racism embedded in the laws, policies, and practices of social and governmental institutions, resulting in discrimination against certain racial groups.