If Output Is Below the Natural Rate, Output Will Increase

question 7

Multiple Choice

If output is below the natural rate, output will increase due to a _____ in wages, which leads _____ to shift to the right.

• A) rise, AD
• B) fall, AD
• C) rise, AS
• D) fall, AS

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Definitions:

Expected Return

The probable gain or loss one expects from an investment, taking into account both the probability and the magnitude of returns.

Stock Prices

represent the current market value of a share of a company's stock, influenced by investor demand, company performance, and market conditions.

Internet Companies

Businesses that operate primarily on the internet, offering services such as social networking, online shopping, and information sharing.

Fundamentals

The basic elements or principles of a subject, theory, or system.