​ ​ Exhibit 16A-2 Macro AD/AS Models

question 31

Multiple Choice

​ ​ Exhibit 16A-2 Macro AD/AS Models
​

​ As shown in Panel (b) of Exhibit 16A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?

• A) ​Competition among firms for workers increases the nominal wage and SRAS shifts rightward.
• B) ​Long-run equilibrium will be established at Y ₁ and P ₂ .
• C) ​Long-run equilibrium will be established at Y _p and P ₃ .
• D) ​Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.

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Definitions:

Carbon-Carbon Triple Bond

A chemical bond between two carbon atoms involving six bonding electrons instead of the usual two, making it stronger and shorter than single and double bonds.

Binomial Populations

Populations characterized by two possible outcomes for each observation, such as success or failure, often modelled using the binomial distribution.

True Proportion

A statistical term that refers to the actual fraction of a population that possesses a specific attribute or outcome.

SRS

Simple Random Sample, a sampling method where each member of a population has an equal chance of being included in the sample.