Use the Following to Answer Questions

question 27

Multiple Choice

Use the following to answer questions :
Figure: AD-AS
-(Figure: AD-AS) Look at the figure AD-AS. Suppose the economy starts at E₁ and moves to E₂, where AD₂ intersects SRAS_1. SRAS₁ will shift to SRAS₂ because:

• A)real wages rise in the long run.
• B)nominal wages rise in the long run.
• C)the real money supply rises in the long run.
• D)aggregate real output rises in the long run.

---

Definitions:

Managerial Bonuses

Financial rewards given to managers above their regular pay, typically linked to performance or organizational success.

Technical Information

Detailed data and knowledge about specific processes, designs, systems, or products, often requiring specialized understanding or expertise.

Creative Individuals

Persons who have the ability to think outside the box and produce ideas or solutions that are novel and valuable.

Social Approval

The acceptance or endorsement by others in a social context, often influencing behavior and self-esteem.