Which of the Following Does Not Occur When Real GDP

question 85

Multiple Choice

Which of the following does not occur when real GDP rises above potential GDP?

• A)The unemployment rate falls below the natural unemployment rate.
• B)The capacity utilization rate increases.
• C)Firms increase their prices.
• D)The unemployment rate rises above the natural unemployment rate.
• E)Demand increases.

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Definitions:

Win-Win Situation

A scenario in which all parties involved gain or achieve their objectives.

Mutual Problem Solving

A collaborative approach where involved parties work together to find solutions to their common issues.

Environmental Events

Occurrences within the environment that can impact the operations and success of organizations or individuals.

Induce Stress

To cause or stimulate the feeling of strain or pressure in individuals.