Suppose That There Is an Increase in the Costs of Production

question 116

Multiple Choice

Suppose that there is an increase in the costs of production that shifts the short-run aggregate supply curve left.If there is no policy response,then eventually

• A)because unemployment is low,wages will be bid up and short-run aggregate supply will shift right.
• B)because unemployment is low,wages will be bid down and short-run aggregate supply will shift right.
• C)because unemployment is high,wages will be bid up and short-run aggregate supply will shift right.
• D)because unemployment is high,wages will be bid down and short-run aggregate supply will shift right.

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Definitions:

Inauthentic Coping Strategies

Techniques that do not align with one's true feelings or needs and can lead to further psychological distress.

Reality

The state of things as they actually exist, as opposed to an idealized, imagined, or theoretical understanding of them.

William Glasser

An American psychiatrist who developed the theories of Choice Theory and Reality Therapy.

Fritz Perls

A psychiatrist and psychotherapist known for developing Gestalt therapy, which emphasizes personal responsibility and living in the present moment.