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:

Currency Exchange Rates

The value of one currency for the purpose of conversion to another, which plays a crucial role in international trade and finance.

Global Marketplace

An interconnected market beyond national borders where goods, services, and currencies are exchanged worldwide.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, celebrating differences in heritage, language, traditions, and values.

Income Distribution

The way in which a country's total income is spread among its population, affecting economic equality and living standards.