Exhibit 20A-2  Macro AD/AS Models as Shown in Panel (B)

question 171

Multiple Choice

Exhibit 20A-2  Macro AD/AS Models As shown in Panel (b) of Exhibit 20A-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 Y₁ and P₂.
• C) Long-run equilibrium will be established at Y_p and P₃.
• D) Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.

---

Definitions:

Embryonic Development

The process by which an embryo forms and develops, involving cell division, cell differentiation, and morphogenesis.

Invagination

A process in developmental biology where a part of the cell or tissue surface folds inward to form a pocket or pouch.

Organogenesis

The phase of embryonic development concerned with the formation of organs and organ systems.

Embryonic Development

The process by which an embryo forms and develops, involving cell division, growth, and differentiation.