If Efficiency Wages Became More Common, Where Would the Long-Run

question 176

Multiple Choice

If efficiency wages became more common, where would the long-run Phillips curve and the long-run aggregate-supply curve shift?

• A) Both the long-run Phillips curve and the long-run aggregate-supply curve would shift right.
• B) Both the long-run Phillips curve and the long-run aggregate-supply curve would shift left.
• C) The long-run Phillips curve would shift right, and the long-run aggregate-supply curve would shift left.
• D) The long-run Phillips curve would shift left, and the long-run aggregate-supply curve would shift right.

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Definitions:

Absolute and Relative

Absolute pertains to values or principles that are universally valid, without relation to other things. Relative refers to something that is considered in relation or in proportion to something else.

Define Poverty

Entails a condition where an individual or community lacks the financial resources and essentials for a minimum standard of living.

Poverty Line

A threshold used to determine the minimum level of income required to secure the necessities of life.

Basic Subsistence

The minimum resources necessary for maintaining the basic levels of living including food, shelter, and clothing.