Given the Expected Price Level,policies for Reaching Potential GDP Will

question 20

Multiple Choice

Given the expected price level,policies for reaching potential GDP will work best if the money supply is:

• A)large,so that prices at potential GDP are below expectations and people can afford to buy enough goods to support the natural level of employment.
• B)large enough,so that prices at potential GDP are above expectations and firms can afford to hire workers.
• C)small,so that prices at potential GDP are below expectations and people can afford to buy enough goods to support the natural level of employment.
• D)small,so that prices at potential GDP are above expectations and firms can afford to hire the workers.
• E)exactly the size that makes prices equal to the prices people expected to prevail.

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Definitions:

Employee Surplus

A situation in which a company has more employees than needed, often leading to layoffs, reassignments, or other workforce adjustments.

Hiring Freeze

A temporary halt in the recruitment process, typically implemented to reduce costs or reassess staffing needs within an organization.

HRIS

Human Resource Information System, a software or online solution for managing an organization's human resources data and processes.

Managerial Decision Needs

The information and insights required by managers to make informed and effective decisions in organizational contexts.