Use the Aggregate Supply/aggregate Demand Model in Figure 13

question 5

Multiple Choice

Use the aggregate supply/aggregate demand model in Figure 13.4 to answer the following scenario. The United Auto Workers were able to negotiate a contract for higher wages and better benefits. The economy initially moves from point ________ to point ________; eventually the economy returns to the steady state at point ________.

• A) c; d; a
• B) a; d; a
• C) c; a; b
• D) b; a; c
• E) Not enough information is given.

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Definitions:

Real Number Line

A line that graphically represents all possible real numbers, where each point on the line corresponds to a unique real number.

Inequality

An inequality is a mathematical statement indicating that two expressions are not equal, represented by symbols such as > (greater than), < (less than), ≥ (greater than or equal to), or ≤ (less than or equal to).

Graphing Calculator

A handheld device capable of plotting graphs, solving equations, and performing other mathematical operations and visualizations.

Real Line

A linear continuum of points representing real numbers, effectively illustrating the concept of the infinite nature of real numbers on a one-dimensional scale.