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:

Self-image

The mental picture one forms about oneself, encompassing beliefs, attitudes, and perceptions about personal ability and appearance.

Self-serving Bias

The tendency to attribute positive events to one's own character but attribute negative events to external factors.

Defensive Self-esteem

A form of self-esteem that is fragile and vulnerable, often resulting in defensive reactions to criticism or perceived threats.

Possible Selves

Concepts individuals hold about who they might become, who they hope to become, or who they fear becoming in the future.