If Workers and Other Resource Suppliers Negotiate Higher Resource Payments,which

question 148

Multiple Choice

If workers and other resource suppliers negotiate higher resource payments,which of the following is true?

• A)The long-run aggregate supply curve will shift rightward.
• B)There will be a leftward movement along a fixed short-run aggregate supply curve.
• C)The long-run aggregate supply curve will shift leftward.
• D)The short-run aggregate supply curve will shift rightward.
• E)Higher resource payments will cause the price level to rise.

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Definitions:

Present Value

The present value of an amount of money or series of cash inflows expected in the future, discounted at a given rate of return.

Benefits And Costs

The positive outcomes (benefits) and negative outcomes (costs) associated with a particular action or investment, often analyzed in decision-making.

Weak Property Rights

Situations where ownership rights are not fully enforced, leading to potential misuse or underinvestment in resources.

Faster Extraction

The increased rate at which natural resources are removed from the environment, often aiming to meet high demand but potentially leading to sustainability issues.