An Inflationary Output Gap Implies That

question 116

Multiple Choice

An inflationary output gap implies that

• A)the demand for all factor services will be relatively low.
• B)the intersection of AD and AS occurs at real GDP below potential output.
• C)the economy's resources are being used beyond their normal capacity.
• D)there is a pressure for wages to decrease.
• E)there is excess supply of most factors of production.

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Definitions:

Conventional Arbitration

A dispute resolution process where a neutral third party makes a binding decision on a conflict between two parties, commonly used in labor disputes.

Corporate Campaigns

Coordinated efforts, typically by unions or activist groups, to pressure a company into changing its policies, practices, or treatment of workers through public, financial, or political means.

Emergency Board

A temporary panel formed, often by a government, to intervene and resolve a deadlock in labor disputes and avoid disruptions such as strikes.

Secondary Boycott

A form of protest in which a union encourages both its members and the general public not to buy the products of a company that is involved in a dispute.