The Figure Given Below Depicts the Long Run Equilibrium in an Economy

question 60

Multiple Choice

The figure given below depicts the long run equilibrium in an economy.
Figure 14.1
In the figure:
AD₁ and AD₂: Aggregate demand curves
AS₁ and AS₂: Aggregate supply curves
-Refer to Figure 14.1. When the economy moves from point B to point C:

• A) both the unemployment rate and the rate of inflation increases.
• B) both the unemployment rate and the rate of inflation declines.
• C) the unemployment rate declines at the cost of higher inflation.
• D) the rate of inflation declines at the cost of a higher unemployment rate.
• E) the rate of inflation declines with no change in the unemployment rate.

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Definitions:

Two-Layered Study

A research approach that examines a topic or phenomenon at two different levels of analysis or perspectives to gain a more comprehensive understanding.

Informal Social Networks

The unofficial and often not visible interconnections among individuals within an organization that influence the flow of information, facilitating social and professional interactions.

Structural Positions

The designated roles, responsibilities, and levels of authority within an organization's hierarchy.

Organizational Change

The process through which a company undergoes a significant transition in its operations, structure, or strategy.