Refer to the Graph Given Below

question 55

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:

Murderer

An individual who unlawfully kills another human being with premeditation or malice aforethought.

External Restraint

Controls imposed from outside an individual that influence behavior, such as laws, social norms, or cultural expectations.

Homicide

The act of one human killing another, ranging from accidental to premeditated murder, and regarded as a severe crime under the law.

Suicide

The act of intentionally causing one's own death.