If the Equilibrium Output Exceeds Potential Output

question 123

Multiple Choice

If the equilibrium output exceeds potential output:

• A) inflation usually increases.
• B) aggregate demand increases.
• C) unemployment rises.
• D) the price level decreases.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Depression

An emotional well-being issue defined by consistently low spirits or a disinterest in usual activities, which seriously affects daily living.

Amnesia

Amnesia is a loss of memory due to brain injury, disease, or psychological trauma, affecting the ability to recall past events.

Obsessive Compulsive Disorder (OCD)

A mental disorder characterized by intrusive thoughts (obsessions) that produce uneasiness and repetitive behaviors (compulsions) aimed at reducing these thoughts.