Use the Following Graph to Answer the Next Seven Questions

question 83

Multiple Choice

Use the following graph to answer the next seven questions. The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased, with no change in short-run aggregate supply (SRAS) .

-During the Great Recession,real gross domestic product (GDP) fell yet the price level was largely unchanged,as depicted in the graph.Because of this,we know that:

• A) both aggregate demand and long-run aggregate supply increased during the recession.
• B) aggregate demand and long-run aggregate supply both decreased during the recession.
• C) aggregate demand decreased and long-run aggregate supply increased during the recession.
• D) aggregate demand decreased and short-run aggregate supply increased during the recession.
• E) long-run aggregate supply increased and short-run aggregate supply decreased during the recession.

---

Definitions:

Herzberg's Motivator-Hygiene Model

Herzberg's Motivator-Hygiene Model is a theory that distinguishes between motivators, which can increase job satisfaction, and hygiene factors, which, if absent, can lead to dissatisfaction but not necessarily enhance satisfaction if present.

Motivator

An element that drives or encourages an individual or group to take action or to perform in a certain way, either through internal desire or external incentive.

Job Characteristics Model

A theoretical framework suggesting that job satisfaction is influenced by five core dimensions: skill variety, task identity, task significance, autonomy, and feedback.

Critical Psychological States

Essential mental conditions believed to affect an individual's motivation and effectiveness in a work setting.