An Inflationary Output Gap Would Generate Which of the Following

question 132

Multiple Choice

An inflationary output gap would generate which of the following conditions in the economy?

• A)Firms are making low profits.
• B)Workers have relatively more bargaining power with employers.
• C)There is an unusually small demand for labour.
• D)There is downward pressure on wages.
• E)There is much idle capacity.

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Definitions:

Nonverbal Symbols

Forms of communication without the use of spoken language, involving gestures, body language, facial expressions, and other visual cues to convey messages or emotions.

Encoding

The process of converting information into a form that can be transmitted and understood by a receiver, critical in communication.

Sender

The party in a communication process who initiates the message and transmits it to the receiver.

Visual Aids

Tools such as charts, diagrams, or videos used to enhance understanding or retention of information.