If Actual GDP Is Less Than Potential Output, Then the Economy

question 44

Multiple Choice

If actual GDP is less than potential output, then the economy is:

• A) in an inflationary gap.
• B) in a recessionary gap.
• C) in a long-run equilibrium.
• D) at full employment.

Evaluate the arguments for and against minimum wage laws and other price controls.

Appreciate the complexity of real-world labor markets and the implications of government intervention.

Understand the concept and implications of price ceilings and floors in markets.

Comprehend the effects of binding minimum wages on labor market outcomes, including employment levels.

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Definitions:

Make-up Exam

A test offered at a later time for students who were unable to attend the original exam due to valid reasons.

Schedule of Reinforcement

The specific pattern and timing of presenting rewards in operant conditioning to shape behavior.

Reinforcers

Reinforcers are stimuli that increase the likelihood of a behavior being repeated, and can be positive (adding something desirable) or negative (removing something undesirable).

Desired Response

The specific outcome or behavior that a researcher or practitioner aims to elicit in a particular setting or study.