Figure 28-1 -Refer to Figure 28-1. Suppose That the Economy Is Currently

question 205

Multiple Choice

Figure 28-1
-Refer to Figure 28-1. Suppose that the economy is currently at point A on the short-run Phillips curve in the figure above, and the unemployment rate at A is the natural rate. If the economy was to move to point B, which of the following must be true?

• A) The economy is producing a level of GDP equal to potential GDP.
• B) Aggregate demand must have increased.
• C) Equilibrium GDP at point B must be below potential GDP.
• D) The Fed conducted expansionary policy to cause the move.
• E) The Fed purchased treasury bills to cause the move.

Recognize the barriers to effective positive reinforcement and strategies to overcome them.

Understand the concept of "flow" and its relevance to personal and organizational productivity.

Understand how to construct effective incentive plans in team-oriented work environments.

Identify and challenge common misconceptions about positive reinforcement in management.

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