In the Short Run,a Decrease in Wage Rates,ceteris Paribus,shifts the

question 5

Multiple Choice

In the short run,a decrease in wage rates,ceteris paribus,shifts the

• A) AD curve to the right,causing equilibrium price level to rise and equilibrium Real GDP to increase.
• B) AD curve to the left,causing equilibrium price level to fall and equilibrium Real GDP to decrease.
• C) SRAS curve to the right,causing equilibrium price level to fall and equilibrium Real GDP to increase.
• D) SRAS curve to the left,causing equilibrium price level to rise and equilibrium Real GDP to decrease.

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Definitions:

Job Methods

Systematic procedures or approaches used in the performance of tasks or duties in the workplace.

Octants

One of eight equal parts into which a three-dimensional space can be divided by three mutually perpendicular planes.

Fiedler's Contingency Theory

A leadership model asserting that the effectiveness of a leader's style is contingent on the situational context, including the leader's relationships with followers and task structure.

LPC

Least Preferred Coworker scale, a tool used in Fiedler's Contingency Theory to measure a leader's task or relationship orientation.