FIGURE 24-2 -Refer to Figure 24-2.Suppose the Economy Is in Equilibrium at Equilibrium

question 31

Multiple Choice

FIGURE 24-2
-Refer to Figure 24-2.Suppose the economy is in equilibrium at Y₁.The economy's automatic adjustment process will restore potential output,Y^*,through

• A)wage increases and a leftward shift of the AS curve.
• B)wage increases and a rightward shift in the AS curve.
• C)wage decreases and a rightward shift of the AD curve.
• D)an increase in potential GDP to intersect both the AD and AS curves at B.
• E)a leftward shift of the AD to intersect both the AS and potential GDP at A.

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Definitions:

Labour Markets

The supply and demand dynamics of labor, where employers seek to hire workers and workers seek employment.

KSAs

Knowledge, Skills, and Abilities; refers to the competencies required to perform a job effectively.

Preferential Consideration

The practice of giving priority or advantage to certain employees or candidates, often based on specific criteria or attributes.

Retention

Retention in a business context refers to the ability of a company to keep its employees from leaving to work elsewhere.