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:

Intentional Community

A planned residential community designed with a high degree of social cohesion and teamwork, sharing common values or interests.

Group Processes

The psychological and social dynamics that occur within a group setting, influencing how members interact, make decisions, and solve problems.

Trade and Barter

An economic system where goods or services are exchanged without the use of money.

Equity

The principle of fairness or justice in the way people are treated, often referring to the distribution of resources or opportunities.