Exhibit 14A-4  Macro AD-AS Model in Exhibit 14A-4, the Self-Correction

question 38

Multiple Choice

Exhibit 14A-4  Macro AD-AS Model In Exhibit 14A-4, 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 unemployed workers causes a rightward shift in SRAS.
• 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:

Levator Veli Palatine

The Levator Veli Palatini is a muscle in the soft palate that helps lift the soft palate during swallowing, preventing food from entering the nasal passages.

Hand Muscle

Muscles located in the hand that enable movement of the fingers and thumb, contributing to grip and manipulation activities.

Suprahyoid

Referring to the group of muscles located above the hyoid bone, crucial for functions such as swallowing and tongue movement.

Flexor Pollicis Brevis

A muscle in the hand that flexes the thumb, contributing to the thumb's gripping function.