The Rise and Fall of Real GDP Over the Course

question 99

Multiple Choice

The rise and fall of real GDP over the course of the business cycle suggests that

• A) the economy is always at full employment.
• B) the economy may not always be in long-run equilibrium.
• C) the economy is always at its potential output level.
• D) wage and price stickiness ensures that the economy moves from a peak to a trough.

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Definitions:

Decision-Making Strategy

A methodological approach to choosing among different options or actions based on specific criteria, objectives, or principles.

Autocratic

A leadership style characterized by individual control over all decisions and little input from group members.

Charismatic Leadership

Leadership style based upon the leader’s (perceived) possession of charisma.

Personality Trait

Characteristic patterns of thought, emotion, and behavior that are relatively stable over time and across different situations.