In the Short-Run, an Output Gap Occurs Because

question 164

Multiple Choice

In the short-run, an output gap occurs because

• A) there is insufficient demand for goods and services.
• B) there is insufficient supply of goods and services.
• C) wages and prices are fully flexible.
• D) wages and some prices have not adjusted sufficiently to maintain output at its potential level.

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Definitions:

Child-Rearing Attitudes

The beliefs, practices, and behaviors adopted by parents and guardians in the upbringing of children.

Socioeconomic Status

A combined measure of an individual's or family’s economic and social position relative to others, based on income, education, and occupation.

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Id

In psychoanalytic theory, the part of the personality responsible for basic drives and instincts.