Use the Following to Answer Questions :
Exhibit: Shifting IS $I S _ { 1 } ^ { * }$

question 73

Multiple Choice

Use the following to answer questions :
Exhibit: Shifting IS* and LM*
-(Exhibit: Shifting IS* and LM*) A small open economy with a floating exchange rate is initially in equilibrium at A with $I S _ { 1 } ^ { * }$ $L M _ { 1 } ^ { * } .$ Holding all else constant, if domestic consumers develop greater preferences for imported goods, then the _____ curve will shift to _____.

• A) LM₁*; \(L M _ { 2 } ^ { * }\)
• B) LM₁*; \(L M _ { 3 } ^ { * }\)
• C) IS₁*; \(I S _ { 2 } ^ { * }\)
• D) IS₁*; \(I S _ { 3 } ^ { * }\)

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Definitions:

Representation Gap

The disparity between workers' need for representation in decision-making processes and the actual representation they have.

Labor Standards

Regulations established to ensure fair working conditions, including minimum wage, working hours, safety guidelines, and child labor laws.

Negotiate

To engage in discussions aimed at reaching an agreement or compromise between two or more parties with differing objectives, often used in contexts such as business or international relations.

Union Density Rates

The percentage of workers in a specific area or industry that are members of unions.