When Aggregate Demand Is High Enough to Drive Unemployment Below

question 119

Multiple Choice

When aggregate demand is high enough to drive unemployment below the natural rate,

• A) there is downward pressure on the price level,and the government may want to conduct contractionary fiscal policy.
• B) the economy is slipping into a recession,and the government may want to conduct expansionary fiscal policy.
• C) there is upward pressure on the price level,and the government may want to conduct contractionary fiscal policy.
• D) there is upward pressure on the price level,and the government may want to conduct expansionary fiscal policy.
• E) there is downward pressure on the price level,and the government may want to conduct expansionary fiscal policy.

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Definitions:

Animal Behavior

The study of how animals interact with each other and their environments, encompassing all the ways animals act, both instinctively and learned.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, and genetics.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.

Work-Related Stress

Stress experienced due to factors in the work environment, including workload, pressure to perform, and interpersonal conflicts.