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Exhibit: Shift in Aggregate Demand
-(Exhibit: Shift in Aggregate Demand) Assume that the economy is initially at point A with aggregate demand given by AD2. A shift in the aggregate demand curve to AD0 could be the result of either a(n) ______ in the money supply or a(n) ______ in velocity.
Shirking
Shirking describes when employees underperform or exert less effort than expected because of insufficient incentives or the absence of effective monitoring.
Perfectly Inelastic
Describes a situation where the quantity demanded or supplied does not change in response to a change in price; the demand or supply curve is vertical.
Labor Supply Curve
A visual diagram that illustrates the connection between the salary provided and the amount of work employees are ready to offer.
Competitive Firm
A company operating in a market where there are many buyers and sellers, and no single entity can influence the market price.
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