Figure 8-5 Panel (A) Shows an Economy's Aggregate Production

question 75

Multiple Choice

Figure 8-5 Panel (a) shows an economy's aggregate production function, Panel (b) shows the labor market and Panel (c) shows the economy's long-run aggregate supply curve.
-Refer to Figure 8-5. An upward shift of the aggregate production function would lead to

• A) a decrease in the real wage and to a decrease in real GDP.
• B) an increase in the real wage and to a decrease in real GDP.
• C) a decrease in the real wage and to an increase in real GDP.
• D) an increase in the real wage and to an increase in real GDP.

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Definitions:

Subsystems

Components of a larger system that work together to achieve a common goal, each performing a specific function within the overall system.

Declarative Memories

Memories that can be consciously recalled such as facts and events.

Recognition

The cognitive process of identifying a familiar object, concept, or piece of information from previous encounters or knowledge.

Recognition

The identification of something as having been previously seen, heard, known, etc.