Use the Following to Answer Questions

question 350

Multiple Choice

Use the following to answer questions :
Figure: Output Gap
-(Figure: Output Gap) Look at the figure Output Gap. If the economy is at Y₂ because of contractionary monetary policy and no further policy is implemented, in the long run nominal wages will _____ and shift the short-run aggregate supply curve to the _____, which will _____ real output.

• A)increase; left; decrease
• B)increase; right; increase
• C)decrease; left; decrease
• D)decrease; right; increase

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Definitions:

Noncompetition Provision

A clause in a contract that prohibits an individual from entering into or starting a similar profession or trade in competition against another party, typically an employer, for a certain period of time and within a specific geographic area.

Successor Company

A company or entity that takes over the operations, assets, and liabilities of another company, typically through merger or acquisition.

Assignable

Refers to a right or duty that can be transferred from one party to another.

Delegable

Capable of being entrusted or assigned to another person, typically referring to duties or responsibilities that can be transferred to others.