-Refer to Exhibit 9-6

question 99

Multiple Choice

-Refer to Exhibit 9-6.If the economy is self-regulating and currently at point 1,what is going to happen?

• A) Wages rise,the SRAS curve shifts to the right until it passes through point 3; in long-run equilibrium the price level is lower and Real GDP is higher than at point 1.
• B) Wages fall,the SRAS curve shifts to the left until it passes through point 2; in long-run equilibrium the price level is higher and Real GDP is lower that at point 1.
• C) Wages fall,the SRAS curve shifts to the right until it passes through point 3; in long-run equilibrium the price level is lower and Real GDP is higher than at point 1.
• D) Wages rise,the AD curve shifts to the right until it passes through point 4; in long-run equilibrium the price level and Real GDP are higher than at point 1.
• E) Prices rise,the AD curve shifts to the right until it passes through point 4; in long-run equilibrium the price level and Real GDP are higher than at point 1.

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Definitions:

Total Sales

The sum of all sales (revenue) generated by a business within a specific period, reflecting the volume or value of all units sold.

Operating Data

Information related to the day-to-day functions of a business, which includes sales, production volumes, and inventory levels, used to support operational decision-making.

Sales

The total revenue generated from the sale of goods or services.

ROI

Return on Investment; a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.