Use the Following to Answer Questions

question 52

Multiple Choice

Use the following to answer questions:
Figure: Aggregate Supply
-(Figure: Aggregate Supply) Refer to Figure: Aggregate Supply. If the economy is at point E, nominal wages will _____, and the short-run aggregate supply curve will shift _____ until actual potential is _____ potential output.

• A) increase; left; equal to
• B) increase; right; greater than
• C) decrease; right; equal to
• D) decrease; right; less than

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Definitions:

Henry Clay

A prominent American statesman and politician known for his skills as a compromiser during the first half of the 19th century, playing a key role in several major legislative agreements.

Log Cabin

A small house built from logs, often associated with the American frontier and pioneer life.

William Henry Harrison

The ninth President of the United States, whose term in 1841 was the shortest in U.S. presidential history, dying just one month after taking office.

Public Sphere

An area in social life where individuals can come together to freely discuss and identify societal problems, and through that discussion influence political action.