Figure 7-2 -Refer to Figure 7-2. Based on the Figure, We Can

question 56

Multiple Choice

Figure 7-2
-Refer to Figure 7-2. Based on the figure, we can conclude that

• A) in the short run, the economy will always achieve full-employment equilibrium.
• B) in the long run, given flexible wages and prices, the economy will achieve equilibrium at its potential output level.
• C) flexible wages and prices are irrelevant since the LRAS curve is vertical.
• D) in the long run, the aggregate demand curve determines the potential output level.

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Definitions:

Functional Manager

A supervisor who has oversight over a particular department or function within the organization, such as finance, marketing, or production.

Conflict

The process that occurs when one person, group, or organizational subunit frustrates the goal attainment of another.

Functional Departmentation

The process of dividing an organization into departments based on specific functions or tasks.

Skills and Responsibilities

The specific abilities and duties that are required or expected from an individual in their professional role.