The Diagram Below Shows an AD/AS Model for a Hypothetical

question 15

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-3
-Refer to Figure 24-3.After the negative aggregate demand shock shown in the diagram (from to ) ,which of the following describes the adjustment process that would return the economy to its long-run equilibrium?

• A)Wages would eventually fall,causing the AD curve to shift to the right,returning to the original equilibrium at point A.
• B)Wages would eventually fall,causing the AS curve to shift slowly to the right,reaching a new equilibrium at point E.
• C)Wages would increase,causing the AS curve to shift to the right,reaching a new equilibrium at point E.
• D)Wages would increase,causing the AD curve to shift to the right,returning to the original equilibrium at point A.
• E)Potential output would decrease from 1000 to 900 and a new long-run equilibrium would be established at point D.

Understand common development methods and the reasons behind their implementation.

Recognize the benefits and motivations behind job rotation and succession management.

Identify methods for identifying and developing high-potential employees.

Grasp the importance and process of aligning succession management with organizational strategy and external challenges.

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Definitions:

Imitate

To copy or mimic the actions, behaviors, or mannerisms of someone or something, often as a form of learning or homage.

Competitors

Other businesses or individuals that offer similar products or services and vie for the same market share or customer base.

Defence Mechanisms

Psychological strategies deployed unconsciously by individuals to protect themselves from anxiety or to cope with reality or maintain self-image.

Strongly Identify

To have a powerful or intense association with a particular group, belief system, or identity.