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

question 43

Multiple Choice

  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:

Written Contracts

Legally binding agreements captured in writing that specify the duties, rights, and obligations of each party.

Date Due

The specified day by which an obligation must be fulfilled or a payment must be made.

Aging of Accounts

The process of categorizing accounts receivable by the length of time they have been outstanding.

Delinquent

An individual or entity that fails to fulfill an obligation, particularly in terms of financial debt payments, within the stipulated time.