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.

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Definitions:

Nerve Impulses

Electrical signals that travel along nerve cells and are used for communication throughout the body.

Sensation

The process of receiving and interpreting information from the environment through sensory receptors.

Motor Neurons

Nerve cells forming part of a pathway along which impulses pass from the brain or spinal cord to a muscle or gland.

Sensory Neurons

Neurons that transmit sensory information from the body to the central nervous system for interpretation.