12.2 Equilibrium in Aggregate Demand and Supply Analysis

question 61

Multiple Choice

12.2 Equilibrium in Aggregate Demand and Supply Analysis
AD - AS Equilibrium
-On the graph above,consider a point A at which output is greater than potential output.At this point,________.

• A)the inflation rate will rise
• B)output will rise
• C)potential output will rise
• D)the aggregate demand curve will shift to the left
• E)none of the above

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Definitions:

Employment

An agreement between an employer and an employee where the employee agrees to perform certain duties in exchange for compensation.

Judicial Decisions

Outcomes of court cases that establish precedents and may guide future legal actions.

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Picketing by striking employees not just of their own workplace but also of other locations where the employer carries on business.

Union

An organization formed by workers in various sectors of a community for the purpose of advancing their common interests related to working conditions, wages, and benefits.