If the Economy Is at Potential Output and the Fed

question 167

Multiple Choice

If the economy is at potential output and the Fed decreases the money supply so that actual output is less than potential output, eventually nominal wages will_____ and short-run aggregate supply will _____.

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

Identify the concepts and different types of Corporate Social Responsibility (CSR) practices.

Understand the components and significance of psychological capital in the workplace.

Appreciate the importance of communication for psychological health in the workplace.

Grasp the concept and elements of work engagement.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, leading to a reduced cost per unit of output.

Average Variable Cost Curve

A graphical representation that shows how the average variable cost of production varies with the level of output.

Long-run Average Total Cost

This refers to the per unit cost of production when all inputs can be adjusted, conceived for analyzing the scale of production without the constraint of fixed capital.

Per Unit Costs

The average cost for each unit produced, calculated by dividing the total costs of production by the number of units produced.