Assume That the Economy Is Initially Operating at the Natural

question 23

Multiple Choice

Assume that the economy is initially operating at the natural level of output. An increase in the price of oil will cause which of the following in the medium run?

• A) An increase in output and a decrease in the interest rate.
• B) A decrease in unemployment, an increase in the nominal wage and an increase in the aggregate price level.
• C) An increase in the interest rate.
• D) An increase in the aggregate price level and no change in output.
• E) A decrease in output and an increase in the aggregate price level.

Understand the mechanisms and implications of electronic surveillance.

Analyze the ethical dimensions of information privacy.

Identify ethical frameworks and apply them to evaluate privacy scenarios.

Recognize the importance and challenges of green IT within ethical decision-making.

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Definitions:

Break-Even Sales

The amount of revenue required to cover total fixed and variable expenses during a specific period, resulting in no profit or loss.

Current Sales

The total sales revenue that a company generates in the present or most recent accounting period.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in sales volume, indicating the degree of fixed versus variable costs.

Percentage Change

A mathematical calculation that depicts the degree of change over time, usually expressed as a percentage.