Real wage WS PS Output Figure 1 The supply side of the economy Consider Figure 1, which represents the supply side of the economy. Which of the following statements correctly describe the economy if it is at point X in the diagram. (Select one or more answers) Select one or more: O A. There is a temporary rise in workers' real wage. O B. There is a temporary fall in workers' real wage. O c. There is a negative output gap and inflation is falling. O D. There is a negative output gap and inflation is constant.

Real wage WS PS Output Figure 1 The supply side of the economy Consider Figure 1, which represents the supply side of the economy. Which of the following statements correctly describe the economy if it is at point X in the diagram. (Select one or more answers) Select one or more: O A. There is a temporary rise in workers' real wage. O B. There is a temporary fall in workers' real wage. O c. There is a negative output gap and inflation is falling. O D. There is a negative output gap and inflation is constant.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 31P: Table 4.6 shows the amount of savings and barrowing in a market for loans lo purchase homes,...

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Please state A,B,C or D from the photo

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Real wage
W
P
WS
PS
Output
Figure 1 The supply side of the economy
Consider Figure 1, which represents the supply side of the economy. Which of the following statements
correctly describe the economy if it is at point X in the diagram. (Select one or more answers)
Select one or more:
O A. There is a temporary rise in workers' real wage.
O B. There is a temporary fall in workers' real wage.
O c. There is a negative output gap and inflation is falling.
O D. There is a negative output gap and inflation is constant.
000

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