When an Economy Fails to Produce at Its Potential

question 113

Multiple Choice

When an economy fails to produce at its potential,
I. there may be actions that the government or the central bank can take to push the economy toward its potential.
II. the unemployment rate is below its natural rate.
III. the average price level is likely to rise.

• A) I, II, and III
• B) I and II only
• C) I and III only
• D) I only

---

Definitions:

Empathy

The ability to understand and share the feelings of another, crucial for establishing meaningful connections and relationships.

Service Quality

Evaluating the degree to which a provided service meets the expectations of a customer.

Service Quality

The degree to which a service meets customers' expectations, often a crucial factor in customer satisfaction and loyalty.

Service Perceptions

The customer's view and evaluation of the quality and effectiveness of a service provided.