Which of the Following Is True When an Economy Produces

question 30

Multiple Choice

Which of the following is true when an economy produces at full employment,but consumers,government,businesses,and the foreign sector do not buy all the output?

• A)Inventories are depleted.
• B)There is a recessionary gap.
• C)Unemployment falls.
• D)The price level rises.

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Definitions:

Incidental Beneficiary

An individual or entity that might receive a benefit from a contract between two other parties, despite not being an intended party of the contract.

Intended Beneficiary

A person for whom a contract is specifically made and who has the right to enforce the contract terms against the parties involved.

Donee Beneficiary

A third party who benefits from a contract between two other parties, especially in the context of gifts or estates.

Gratuitous Assignment

An assignment or transfer of rights or property done voluntarily without receiving any value in return.