In Exhibit 3, the Self-Correction Argument Is That in the Long

question 75

Multiple Choice

In Exhibit 3, the self-correction argument is that in the long run competition:

• A)from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS.
• B)from unemployment workers causes a rightward shift in LRAS.
• C)among firms for workers increases nominal wages and this causes a leftward shift in SRAS.
• D)among consumers causes an increase in the CPI and a rightward shift in SRAS.

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Definitions:

Shareholders

Individuals or entities that own shares in a company, giving them partial ownership and potentially a say in company decisions depending on the type of shares held.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Legal Structure

Pertains to the type of legal organization an entity chooses for the formation of their business, such as a corporation, partnership, limited liability company (LLC), or sole proprietorship.

Sole Proprietorship

A business structure where a single individual owns, operates, and is personally responsible for all aspects of the business.