If Labor Costs Rise at the Same Time That the Federal

question 5

Multiple Choice

If labor costs rise at the same time that the federal government decreases its purchases,in the short run

• A) aggregate output and the price level will both increase.
• B) aggregate output will increase, but the price level will fall.
• C) aggregate output and the price level will both fall.
• D) aggregate output will fall, but the price level may either increase or decrease.

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Definitions:

Internal Attribution

An explanation for behavior focusing on the individual and his or her choices and personality.

Kira's Internal Attribution

The explanation that Kira's behaviors or actions are due to her personal characteristics, feelings, or beliefs rather than external circumstances.

Collectivism

A cultural or societal value emphasizing the importance of groups and community over individual achievement or identity.

Cultural Outlook

The perspective and attitude towards life and world events from the standpoint of a specific culture's traditions, beliefs, and norms.