If Wages and Prices Are Perfectly Flexible, a Decrease in Aggregate

question 38

Multiple Choice

If wages and prices are perfectly flexible, a decrease in aggregate demand will cause a(n) _____ in the price level and _____ in unemployment.

• A) increase; an increase
• B) decrease; a decrease
• C) increase; no change
• D) decrease; no change

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Definitions:

Markov Model

A statistical model that predicts future states based on current data and historical transitions, commonly used in various fields including HR for forecasting workforce changes.

HR Planning Method

Approaches and strategies used by human resource departments to forecast future personnel needs and ensure a balance between demand and supply of skilled workers.

Skills Inventories

A comprehensive list or database that tracks the skills, qualifications, and experiences of employees within an organization.

Capabilities

The skills, resources, and abilities that an organization possesses to successfully perform tasks and achieve its objectives.