Use the Following to Answer Questions

question 119

Multiple Choice

Use the following to answer questions:
Figure: AD-AS Model I
-(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, nominal wages _____, and the _____ curve shifts _____ until the economy reaches long-run equilibrium.

• A) fall; aggregate demand; left
• B) rise; aggregate demand; right
• C) fall; short-run aggregate supply; right
• D) fall; short-run aggregate supply; left

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Definitions:

Continuous Access

Uninterrupted availability or entry to a service, resource, or facility over time.

Direct Cross-Subsidies

Financial strategy where revenue from one product or service is used to support another product or service within the same organization.

Upfront Cost

Initial investment required before starting a project, service, or acquiring a product, often referred to in financial decisions.

Franchising Revenue Model

A business strategy where a company grants third parties the rights to operate using its brand, system, and ongoing support, in exchange for a fee or a percentage of the revenue.