Use the Following to Answer Questions

question 89

Multiple Choice

Use the following to answer questions .
Exhibit: Short-run Aggregate Supply
-(Exhibit: Short-run Aggregate Supply) Suppose that the economy is in long-run equilibrium at point A. Now suppose net exports increase. In the short run,

• A) unemployment is above its natural level.
• B) those who were cyclically unemployed will now find jobs at the going nominal wage rate.
• C) those who were structurally or frictionally unemployed will now find jobs at the going nominal wage rate.
• D) the nominal wage rate rises.

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Definitions:

Total

The sum or aggregate amount resulting from the addition of individual numbers, quantities, or items, often representing a final sum in accounting and mathematics.

Gross Sales

The total sales revenue from goods or services before any deductions for returns or discounts.

Direct Expense

Expenses that can be directly attributed to the production of specific goods or services, such as materials and labor.

Sales Salaries

Compensation paid to employees directly involved in the sales function of a business, typically comprising both base salary and commissions.