Exhibit 20A-2  Macro AD/AS Models in Panel (A) of Exhibit

question 23

Multiple Choice

Exhibit 20A-2  Macro AD/AS Models In Panel (a) of Exhibit 20A-2, the economy is initially in short-run equilibrium at real GDP level Y₁ and price level P₂. Classical theory argues that:

• A) SRAS will shift to leftward and establish full employment at P₃Y_p without government intervention.
• B) higher wages will result in a leftward shift of SRAS.
• C) long-run equilibrium will be established at Y_p and P₁.
• D) all of the above will take place.

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Definitions:

National Counseling Exam

A certification examination for counselors in the United States, assessing knowledge and skills required for effective counseling practice.

Range

The difference between the lowest and highest values in a set of data, indicating dispersion or variability.

Median

The middle value of a data set when it is arranged in ascending or descending order, or the point that divides the distribution into two equal halves.

Standard Deviation

A statistical measure of the dispersion or variation in a set of values, indicating how much the individual values differ from the mean of the set.