-Refer to the Above Graph

question 57

Multiple Choice

-Refer to the above graph. If the economy moves from point B₃ to point C₃ because of an increase in aggregate demand, then:

• A) nominal wages will rise, reducing profits and thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to B₄.
• B) real wages will rise, reducing profits and thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to B₃.
• C) nominal wages will rise, reducing profits and thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to B₃.
• D) nominal wages will rise, reducing profits and thereby negating the short-run stimulus to production and employment so that the economy moves from C₃ to C₂.

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Definitions:

Myelin Sheath

A layer of fat cells that encases and insulates most axons.

Dendrite

Extensions of neurons that receive signals from other neurons, playing a crucial role in the transmission of neural information.

Nucleolus

A small dense spherical structure in the nucleus of a cell during interphase, involved in the production and assembly of ribosomes.

Parasympathetic Nervous System

A component of the autonomic nervous system that plays a crucial role in energy conservation and reducing the heart rate, among various other tasks.