Suppose Government Does NOT Intervene in the Economy

question 82

Multiple Choice

Suppose government does NOT intervene in the economy.How would an expansionary gap be closed in the long run?  

• A) by a rightward shift of the short-run aggregate supply curve 
• B) by a leftward shift of the short-run aggregate supply curve 
• C) by a movement to the right along a fixed short-run aggregate supply curve 
• D) by a movement to the left along a fixed short-run aggregate supply curve

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Definitions:

Legally Enforceable

A term or condition within a contract or agreement that is recognized by law and can be upheld in a court of law.

Union Contract

A legal agreement between a labor union and an employer outlining the terms of employment, working conditions, wages, and other rights and responsibilities.

Seniority-based Pay

A compensation strategy where employees' wages are determined by the length of their service or tenure in the company, rewarding loyalty and experience.

Righttosue Clause

A provision within a contract or law that grants an individual the authority to pursue legal action should their rights be violated.