Identify the Correct Statement Regarding Downsizing

question 40

Multiple Choice

Identify the correct statement regarding downsizing.

• A) Downsizing improves long-term organizational effectiveness.
• B) The negative effect of downsizing is especially low among firms that engage in high-involvement work practices.
• C) Downsizing often disrupts the social networks through which people are creative and flexible.
• D) The negative impact of downsizing is especially low for those organizations that emphasize research and development.
• E) Downsizing campaigns eliminate only people who are replaceable.

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Definitions:

Real GDP

The total value of all goods and services produced by a country, adjusted for inflation or deflation.

Expansionary Gap

A situation in macroeconomics when aggregate output is above potential output, often leading to inflationary pressures.

Recessionary Gap

Describes a situation where the real GDP of an economy is less than its potential GDP, indicating underutilized resources and a sluggish economy.

Deflation

A decrease in the general price level of goods and services in an economy over a period of time, potentially leading to increased unemployment and slower economic growth.