When Real GDP Is Less Than Potential GDP, an Increase

question 86

Multiple Choice

When real GDP is less than potential GDP, an increase in government expenditures will real GDP and _ the price level.

• A) decrease; raise
• B) increase; lower
• C) decrease; lower
• D) increase; raise

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Definitions:

Decision Structure

The framework or methods used by organizations or individuals to make and implement decisions.

Employee Involvement

A workplace strategy that allows employees to participate in decision-making processes and contribute to problem-solving relevant to their work.

Nonprogrammed Decision

Decision-making that occurs in situations that are unique, poorly defined and largely unstructured, requiring custom solutions.

Manager's Involvement

Refers to the degree to which a manager is engaged in the daily operations and decision-making processes of their team or department.