The Initial Aggregate Demand Curve Is AD₁ and the Initial

question 15

Multiple Choice

The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.In the long run,the aggregate supply curve is vertical in the diagram because:

• A) nominal wages and other input prices are assumed to be fixed.
• B) real output level Q_f is the potential level of output.
• C) price level increases produce perfectly offsetting changes in nominal wages and other input prices.
• D) higher than expected rates of actual inflation reduce real output only temporarily.

Understand the importance and components of preparing for collective bargaining, including creating a strike contingency plan.

Recognize the historical trends and current structures of bargaining in the U.S., including its decentralization or centralization.

Comprehend the process and goals of collective bargaining, aiming for a legally binding contract specifying employment terms.

Understand the difference in unionization processes and their implications between public and private sectors.

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple tasks.

Foot-In-The-Door

A persuasion technique where a small request is made first in order to gain compliance for a larger request later.

Door-In-The-Face

A technique in persuasion that involves making a large request that is likely to be refused in order to increase the chances that a person will agree to a smaller request later.

Lowballing

A strategy where an initially favorable offer is made, only to have the terms made less favorable after acceptance.