Scenario 14-2 The Economy Is in Long-Run Equilibrium. Suddenly, Due to Corporate

question 171

Multiple Choice

Scenario 14-2
The economy is in long-run equilibrium. Suddenly, due to corporate scandals, international tensions, and the loss of confidence among policymakers, citizens become pessimistic concerning the future. They maintain this level of pessimism for a long time.
-Refer to the Scenario 14-2.Which of the following are consistent with the aggregate demand and aggregate supply theory?

• A)The expected price level rises. Bargains are struck for higher increases in wages.
• B)The expected price level rises. Bargains are struck for lower increases in wages.
• C)The expected price level falls. Bargains are struck for higher increases in wages.
• D)The expected price level falls. Bargains are struck for lower increases in wages.

---

Definitions:

Self-disclosure

The process of disclosing one's own personal details to other individuals, which may enhance connections and promote closeness.

Ostracism

The act of ostracizing or barring someone from participation in a community or group.

Narcissism

A personality trait characterized by a grandiose sense of self-importance, a need for excessive admiration, and a lack of empathy for others.

Affiliation

The need or drive to create and maintain social relationships with others.