If the Economy Is Experiencing an Expansionary Gap,which of the Following

question 34

Multiple Choice

If the economy is experiencing an expansionary gap,which of the following will occur in the long run?

• A)Workers will negotiate nominal wage increases that will shift the SRAS curve to the left.
• B)Workers will negotiate nominal wage increases that will shift the SRAS curve to the right.
• C)Employers will negotiate lower nominal wages (relative to prices)that will shift the SRAS curve to the right.
• D)Employers will negotiate lower nominal wages (relative to prices)that will shift the SRAS curve to the left.
• E)Aggregate demand will fall because workers' incomes are rising.

---

Definitions:

Parkinson's Disease

A neurodegenerative disorder characterized by motor symptoms such as tremors, stiffness, and bradykinesia, as well as non-motor symptoms.

Alzheimer's Disease

A progressive neurodegenerative disease characterized by memory loss, language deterioration, and impaired ability to mentally process information.

Brain Cells

The cells in the brain, including neurons and glial cells, that process and transmit information through electrical and chemical signals.

Biological Theories

A set of theories in psychology and sociology that attributes human behaviors and characteristics, including criminality, to biological factors such as genetics, neurotransmitter levels, and brain structure.