If the Economy Is in a Recession, It Is Likely

question 170

Multiple Choice

If the economy is in a recession, it is likely that

• A)the aggregate demand curve intersects the inflation adjustment line at a level of real GDP that is higher than potential GDP.
• B)aggregate expenditures are unequal to real GDP.
• C)the aggregate demand curve and the inflation adjustment line do not intersect.
• D)the economy is not in equilibrium and is therefore not on the aggregate demand curve.
• E)the aggregate demand curve intersects the inflation adjustment line at a level of real GDP that is less than potential GDP.

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Definitions:

Love Needs

Emotional requirements centered around affection, belongingness, acceptance, and intimacy, as outlined in Maslow's hierarchy of needs.

Abram Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory in psychology that prioritizes human needs into five levels.

Needs Hierarchy

A theory of human motivation that categorizes needs into a hierarchical levels, from basic physiological needs to self-actualization needs.

Employee Motivation

The level of energy, commitment, and creativity that a company's workers bring to their jobs.