Refer to the Graphs Above

question 11

Multiple Choice

Refer to the graphs above. Assume that the economy is initially at equilibrium where AD₂ and AS intersect in Graph 1, and also assume that the economy is initially at point C in Graph 2. A movement from point C to point B in graph 2 would most likely be associated, in graph 1, with a shift of:

• A) AD to the right
• B) AD to the left
• C) AS to the right
• D) AS to the left

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Definitions:

Industrial Relations

The study and practice of managing the relationships between employers, employees, trade unions, and the government, focusing on conflict resolution and cooperation within the workplace.

Layoffs

The act of temporarily suspending or permanently terminating employees from their jobs, often due to economic downturns or organizational restructuring.

Strike Notice

A formal announcement made by employees or a labor union of their intention to cease work in protest against their employer over certain grievances.

Bargaining Session

A period of negotiation between parties, such as employers and employees, aiming to reach agreement on issues of mutual interest.