Consider the Exhibit Below for the Following Questions

question 68

Multiple Choice

Consider the exhibit below for the following questions.
Figure 33-4
-Refer to Figure 33-4.If the economy starts at A,a decrease in the money supply moves the economy

• A)to A in the long run.
• B)to C in the long run.
• C)back to A in the long run.
• D)to D in the long run.

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Definitions:

Median Earnings

The middle value of earnings in a given distribution, where half of the workers earn less and half earn more.

Hispanics

A demographic group often referring to people with cultural ties to Spanish-speaking countries, particularly those from Latin America and Spain.

African Americans

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.

Efficiency Wages

Efficiency wages are higher-than-market wages paid by employers to increase worker productivity, morale, and retention, reducing turnover and shirking.