Suppose That the Money Wage in the Economy Increases by 8

question 117

Multiple Choice

Suppose that the money wage in the economy increases by 8 percent. As a result the

• A) long-run aggregate supply will decrease.
• B) long-run and the short-run aggregate supply both decrease.
• C) short-run aggregate supply will decrease.
• D) long-run aggregate supply will increase and the short-run aggregate supply will decrease.

Understand the basics of expectancy theory including its components (expectancy, instrumentality, and valence) and their relationships.

Recognize the principles of equity theory, including inputs, outcomes, and the concept of fairness in comparison with others.

Identify the various motivation models and how they explain motivation in organizational settings.

Determine how expectancy and equity theories apply in cultural contexts and organizational practices.

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Definitions:

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the correct periods.

Seller

An individual or entity that offers goods or services in exchange for payment.

Financial Statement

Publications detailing a corporation's financial health, encapsulating the balance sheet, income statement, and cash flow statement.

Normal Balance

The side of an account (debit or credit) where increases are recorded, depending on the account type (asset, liability, equity, revenue, expense).