In the Fooling Model's AD/SAS/LAS Diagram,short-Run Equilibria to the Left

question 29

Multiple Choice

In the fooling model's AD/SAS/LAS diagram,short-run equilibria to the left of the LAS curve require the price level to be

• A)above what workers expect.
• B)above what firms expect.
• C)below what workers expect.
• D)below what firms expect.

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Definitions:

Deregulation

Regulatory trend toward elimination of legal restraints on competition in industries previously served by a single firm in an attempt to improve customer service and lower prices through increased competition.

Regulated Monopolies

Monopolies that are allowed to exist by the government but with restricted and controlled powers to prevent unfair practices.

Cyclically Unemployed

Individuals who are without jobs due to the downturns in the business cycle, rather than through personal choice, often temporary and affected by economic recessions.

Construction Job

Employment in the field of building, designing, or maintaining structures.