Exhibit 14-6 Aggregate Supply Curve

question 57

Multiple Choice

Exhibit 14-6 Aggregate supply curve

-In Exhibit 14-6,when the economy moves from a GDP of $1,000 billion to a GDP of $1,100 billion,

• A) higher wages will lower the cost of producing goods.
• B) real GDP and employment both increase, but only under conditions of constant prices.
• C) real GDP increases and employment decreases, but only under conditions of price level increases.
• D) real GDP and employment both increase, but only under conditions of price level increases.
• E) the economy has reached full employment.

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Definitions:

Content Theories

Profile different needs that may motivate individual behavior.

Individual Beliefs

The personal convictions or acceptances that something is true or exists, which often guide behavior and decision-making.

Career Aspirations

Career aspirations are the long-term career goals or benchmarks that individuals aim to achieve in their professional lives.

Gain Sharing

Rewards employees in some proportion to productivity gains.