If the Economy Is Experiencing an Inflationary Output Gap,the Adjustment

question 79

Multiple Choice

If the economy is experiencing an inflationary output gap,the adjustment process operates as follows:

• A)wages do not adjust,but the AD curve shifts to the right.
• B)wages fall,unit costs fall,and the AD curve shifts rightward.
• C)wages rise,unit costs rise,and the AS curve shifts leftward.
• D)wages rise,unit costs rise,and the AS curve shifts rightward.
• E)wages fall,unit costs fall,and the AS curve shifts rightward.

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Definitions:

'Emic' Analyses

Cultural studies or analyses that are conducted from within the cultural group, using concepts and categories that are meaningful and relevant to the group itself.

Cross-Cultural Analyses

Comparing and contrasting behaviors, customs, norms, and values across different societies or cultures to understand human behavior in a broader context.

Generic Analyses

Assessments or studies designed to be broadly applicable across different contexts, often without specific customization to a particular scenario.

Social Identity Theory

Theory of group membership and intergroup relations based on self-categorization, social comparison and the construction of a shared self-definition in terms of ingroup-defining properties.