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Use the Following to Answer Questions

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Use the following to answer questions:
Figure: Output Gap Use the following to answer questions: Figure: Output Gap   -(Figure: Output Gap)  Refer to Figure: Output Gap. If the economy is at Y<sub>1</sub> as a result of expansionary monetary policy and no further policy is implemented, in the long run nominal wages will _____ and shift the short-run aggregate supply curve to the _____, which will _____ real output. A)  increase; left; decrease B)  increase; right; increase C)  decrease; left; decrease D)  decrease; right; increase
-(Figure: Output Gap) Refer to Figure: Output Gap. If the economy is at Y1 as a result of expansionary monetary policy and no further policy is implemented, in the long run nominal wages will _____ and shift the short-run aggregate supply curve to the _____, which will _____ real output.


Definitions:

Worker Productivity

The measurement of the efficiency and output of workers within a specific period, often assessed at individual, departmental, or company-wide levels.

Random Assignment

A method used in experiments where participants are randomly allocated to different groups to ensure each group is statistically similar, thus increasing the validity of the results.

Control Group

In an experiment, the group of participants that does not receive the experimental treatment, serving as a comparison to evaluate the effect of the treatment.

Distracting Sounds

Auditory stimuli that divert attention away from a focal task or activity, potentially reducing performance or concentration.

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