A Sudden,unexpected Increase in the Economy's Prevailing Wage Level Due

question 1

Multiple Choice

A sudden,unexpected increase in the economy's prevailing wage level due to a general strike threat would

• A) shift the aggregate demand curve out and push equilibrium prices down
• B) shift the aggregate demand curve in and push equilibrium output down
• C) shift the short run aggregate supply curve in and push equilibrium prices up
• D) shift the Phillips Curve in and increase the natural rate of unemployment
• E) shift the long run aggregate supply curve out and push equilibrium prices down

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Definitions:

Continental Crust

The Earth's outer layer comprising granite-rich, less dense rock that makes up the continents.

Oceanic Crust

The part of the Earth's crust that underlies the oceans, thinner and denser than the continental crust.

Salt Deposits

Concentrations of salt left behind when water evaporates, often found in arid environments or as part of geological formations.

NaCl

Sodium chloride, a chemical compound more commonly known as table salt.