Why Might the Short-Run Aggregate Supply Curve Shift to the Right

question 115

Multiple Choice

Why might the short-run aggregate supply curve shift to the right in the long run, following a decrease in aggregate demand?

• A)Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
• B)Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
• C)Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
• D)Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.

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Definitions:

Statistical Discrimination

A practice where individuals are judged and treated based on statistical averages of their group rather than their own specific attributes or actions.

Hiring Decisions

The process of evaluating and selecting candidates for employment in an organization, based on various criteria such as skills, experience, and fit.

Statistical Discrimination

Decision-making based on statistical averages of a group rather than individual qualities, often used in the context of employment and can lead to unfair practice.