When Aggregate Demand Is High Enough to Drive Unemployment Below

question 119

Multiple Choice

When aggregate demand is high enough to drive unemployment below the natural rate,

• A) there is downward pressure on the price level,and the government may want to conduct contractionary fiscal policy.
• B) the economy is slipping into a recession,and the government may want to conduct expansionary fiscal policy.
• C) there is upward pressure on the price level,and the government may want to conduct contractionary fiscal policy.
• D) there is upward pressure on the price level,and the government may want to conduct expansionary fiscal policy.
• E) there is downward pressure on the price level,and the government may want to conduct expansionary fiscal policy.

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Definitions:

Internalization

The process of integrating or absorbing knowledge, beliefs, values, or behaviors into one's own perspective or organizational practices.

Trial

An evaluation period or test run of a product or service to assess its viability or effectiveness before a wider launch or implementation.

Evaluation

The process of assessing or appraising the quality, importance, or value of something.

IMC Program

A strategic plan that uses integrated marketing communication tools and tactics to ensure consistent messaging and branding across all consumer touchpoints.