If Output Is Above Its Natural Rate,then According to Sticky-Wage

question 115

Multiple Choice

If output is above its natural rate,then according to sticky-wage theory

• A)workers and firms will strike bargains for higher wages.This increase in wages shifts the short-run aggregate supply curve right.
• B)workers and firms will strike bargains for higher wages.This increase in wages shifts the short-run aggregate supply curve left.
• C)workers and firms will strike bargains for lower wages.This decrease in wages shifts the short-run aggregate supply curve right.
• D)workers and firms will strike bargains for lower wages.This decrease in wages shifts the short-run aggregate supply curve left.

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Definitions:

Liabilities Assumed

Obligations that a company takes on as part of a transaction, such as purchasing another company or assets.

Identifiable Assets

Assets that can be separated and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract.

Measurement

The process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the statement of financial position or recognised in the statement of profit or loss and other comprehensive income.

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.