If Workers Push for Wages That Are Beyond What Productivity

question 2

Multiple Choice

If workers push for wages that are beyond what productivity gains can justify ________.

• A)a positive output gap ensues which will lead to lower unemployment if the Federal Reserve does not act
• B)a temporary negative supply shock ensues driving up prices
• C)and the Federal Reserve eases monetary policy aimed at increasing aggregate demand to counter the negative supply shock,the inflation rate will decrease
• D)all of the above
• E)none of the above

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Definitions:

Metamemory

An individual's knowledge and awareness of their own memory capabilities and strategies.

Preconventional Level

The first level of Kohlberg's stages of moral development, where behavior is governed by the consequences of the action and compliance with rules to avoid punishment or gain rewards.

Moral Reasoning

The process of determining what is right or wrong in a specific situation, based on ethical principles, values, and beliefs.

Lawrence Kohlberg

A psychologist known for his theory of moral development, which outlines how ethical reasoning and morality evolve throughout different stages of human life.