The Diagram That Shows How the Four Objectives of Macroeconomic

question 53

Multiple Choice

The diagram that shows how the four objectives of macroeconomic policy are related to aggregate demand is the:

• A) circular flow diagram
• B) income- price diagram
• C) aggregate demand- aggregate supply diagram
• D) income- expenditure diagram

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time, such as an hour or a week.

Hiring Workers

The process of employing individuals to perform tasks or services for a business or organization in exchange for compensation.

Shoe Shine Parlor

A storefront or establishment specializing in the cleaning, conditioning, and polishing of shoes.

Labor Demand Schedule

A chart or graph showing the quantity of labor that employers are willing to hire at different wage levels.