-In the Above Figure, Suppose That the Economy Is at Point

question 16

Multiple Choice

-In the above figure, suppose that the economy is at point A when foreign countries begin an expansion and buy more U.S.-made goods. In the short run, this change creates a movement to point ________ and an eventual increase in ________.

• A) B; money wage rates
• B) D; the natural unemployment rate
• C) B; the natural unemployment rate
• D) D; money wage rates

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Definitions:

Binding

Describes an agreement, contract, or legal decision that must be adhered to by the parties involved.

Appealed

To apply to a higher court for a reversal of the decision of a lower court.

International Arbitration

A process used to resolve disputes between parties from different countries outside the courts, using agreed upon arbitrators.

Arbitrators

Neutral third parties selected to impartially resolve disputes between parties in a binding arbitration process, outside of the court system.