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:

Book of Samuel

A book in the Hebrew Bible and the Old Testament, concerned with the lives of Samuel, Saul, and David, and the transition from tribal confederation to monarchy in ancient Israel.

Sant'Apollinare Nuovo

A basilica in Ravenna, Italy, known for its early Christian and Byzantine mosaics, reflecting the religious and artistic heritage of the area.

Ostrogothic Patron

A leader or influential figure of the Ostrogoths, a Germanic people, who supported the arts and architecture during their ruling period in Italy.

Theodoric

King of the Ostrogoths (475-526 AD), his rule marked a period of stability and cultural achievement in the late Roman Empire.