Refer to the Following Figure to Answer the Next Two

question 108

Multiple Choice

Refer to the following figure to answer the next two questions:

-According to the figure,if the economy started at full-employment output,contractionary monetary policy would cause real gross domestic product (GDP) to __________ in the short run.

• A) increase from Y1 to Y₂
• B) increase from Y₁ to Y₃
• C) decrease from Y₂ to Y₁
• D) decrease from Y₃ to Y₂
• E) increase from Y₂ to Y₃

---

Definitions:

Scientific Management

A management theory that analyzes and synthesizes workflows, aiming to improve economic efficiency and labor productivity.

Managerial Subjectivity

The influence of personal biases, preferences, and opinions of managers in their decision-making processes, potentially affecting objectivity in evaluations and judgements.

Union Representatives

Individuals elected or appointed to represent the interests of union members in discussions and negotiations with employer representatives.

Worker Fatigue

The physical and mental weariness resulting from prolonged work or excessive stress.