If Efficiency Wages Became More Common, Where Would the Long-Run

question 176

Multiple Choice

If efficiency wages became more common, where would the long-run Phillips curve and the long-run aggregate-supply curve shift?

• A) Both the long-run Phillips curve and the long-run aggregate-supply curve would shift right.
• B) Both the long-run Phillips curve and the long-run aggregate-supply curve would shift left.
• C) The long-run Phillips curve would shift right, and the long-run aggregate-supply curve would shift left.
• D) The long-run Phillips curve would shift left, and the long-run aggregate-supply curve would shift right.

---

Definitions:

Employment Act

A 1946 United States federal law whose main purpose is to lay the responsibility of economic stability of inflation and unemployment onto the federal government.

Signing Statement

A written remark issued by the President of the United States upon signing legislation; it may outline the president's interpretation of the law or pose objections to specific provisions.

National Security Council (NSC)

A federal agency responsible for advising the President on national security and foreign policy matters.

Advisers (CEA)

Members of the Council of Economic Advisers, a group of economists who advise the President of the United States on economic policy.