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.

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Definitions:

Independently

Acting or functioning without dependence on others; autonomously.

Observing

The act of carefully watching and examining phenomena, environments, or behaviors to gather information.

Onlooker Play

A stage of child play where the child observes others playing but does not join in, often seen as a critical stage in social development.

Observing

The act of carefully watching and noting phenomena as they occur in order to gather information or come to a conclusion.