Consider a Nation in Which Most Workers Are Unionized

question 353

Multiple Choice

Consider a nation in which most workers are unionized. If all the nation's unions band together and succeed in boosting wages established by long-term labor contracts, then

• A) there is a leftward shift in just LRAS.
• B) there is a leftward shift in both LRAS and SRAS.
• C) there is a rightward shift in just SRAS.
• D) there is a rightward movement along the SRAS curve.

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Definitions:

Average Rate

A term often used in finance to describe the mean rate of return or the mean rate of interest over a specified period.

Fixed Asset

Fixed asset, also known as a non-current asset, is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.

Useful Life

The estimated duration an asset is expected to be used in business operations, impacting depreciation calculations.

Residual Value

The estimated amount that an asset is worth at the end of its useful life.