When Actual Output Is Above Potential Output,over Time

question 180

Multiple Choice

When actual output is above potential output,over time:

• A) nominal wages will increase,and the short-run aggregate supply curve will shift to the right.
• B) nominal wages will increase,and the short-run aggregate supply curve will shift to the left.
• C) the aggregate demand curve will shift to the right.
• D) the short-run aggregate supply curve will shift to the right.

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Definitions:

Government

The system or group of people governing an organized community, often a state, including its institutions, laws, and policies.

Plymouth Colony

An early settlement established in 1620 by English Puritans in present-day Massachusetts, known for the celebrated Thanksgiving feast.

Mayflower Compact

An agreement reached by the Pilgrims on the Mayflower in 1620, establishing self-governance in Plymouth Colony.

Civil Government

The branch of government concerned with the administration of the state, including the implementation and enforcement of laws and the management of public affairs.