-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:

Men

Male human beings, often considered in terms of societal, biological, or psychological roles and characteristics.

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Adult human females.

Major Depressive

A mood disorder characterized by persistent feelings of sadness, hopelessness, and loss of interest in activities, significantly impeding daily functioning.

Bipolar Disorder

A brain disorder that causes extraordinary variations in a person's mood, ranging from depressive lows to highs of mania or hypomania.