Figure 27-6 -Refer to Figure 27-6. in the Dynamic Model of AD-AS

question 68

Multiple Choice

Figure 27-6
-Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B

• A) the unemployment rate is very low.
• B) firms are operating at below capacity.
• C) the economy is below full employment.
• D) income and profits are falling.
• E) there is pressure on wages and prices to fall.

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Definitions:

On-site Restaurants

Eateries located within an establishment, such as a business center or corporate office building, providing convenient dining options for employees and visitors.

Medical Benefits

Health-related benefits provided by employers or government programs, which may include medical insurance, dental care, vision care, and prescription drug coverage among others.

Family-friendly Benefit

Employment benefits designed to accommodate employees' family needs, such as flexible working hours, parental leave, and childcare services.

Work-Life Balance

A concept that emphasizes the importance of having equilibrium among work activities, personal life, and family life to ensure overall well-being.