Suppose Workers Become Pessimistic About Their Future Employment, Which Causes

question 28

Multiple Choice

Suppose workers become pessimistic about their future employment, which causes them to save more and spend less. If the economy is on the intermediate range of the aggregate supply curve, then:

• A) both real GDP and the price level will fall.
• B) real GDP will fall and the price level will rise.
• C) real GDP will rise and the price level will fall.
• D) both real GDP and the price level will rise.

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Definitions:

Culturally Defined

Characteristics or norms that are identified and accepted by a particular society or group based on shared values and beliefs.

Cultural Scripts

Normative guidelines for behavior and understanding in various social contexts that are learned and shared within a cultural or social group.

Cultural Context

The societal, ethnic, and cultural background that influences an individual's behavior, perceptions, and interactions with others.

Compliance

The act of conforming, submitting, or adapting one's behavior in accordance with others' wishes, rules, or regulations.