Assume That an Economy Is Operating Beyond Its Productive Capacity

question 54

Multiple Choice

Assume that an economy is operating beyond its productive capacity and there is no government intervention.Suppose workers and other resource suppliers negotiate higher resource payments.What will be the effect on the short-run aggregate supply curve?  

• A) The short-run aggregate supply curve will shift leftward. 
• B) A leftward movement will occur along a fixed short-run aggregate supply curve. 
• C) The short-run aggregate supply curve will NOT shift. 
• D) The short-run aggregate supply curve will shift rightward.

---

Definitions:

AIDA Plan

A marketing strategy that stands for Attention, Interest, Desire, and Action, aimed at guiding potential customers through the stages of purchasing.

Single Event

An occurrence or happening that takes place at a specific time and location.

Long-Term Relationships

Connections or associations that are built to last over an extended period, emphasizing commitment and ongoing interaction.

AIDA Model

A marketing framework that outlines the stages of consumer engagement: Attention, Interest, Desire, and Action, used to guide promotional strategies.