If Real GDP Is Less Than Potential GDP, Then the _{--------------------}and

question 10

Multiple Choice

If real GDP is less than potential GDP, then the _{--------------------}and the price level _{--------------------}

• A)aggregate supply curve shifts rightward; falls
• B)aggregate demand curve shifts leftward; rises
• C)aggregate demand curve shifts rightward; falls
• D)amount of potential GDP increases; falls
• E)aggregate supply curve shifts leftward; rises

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Definitions:

Peter Principle

A concept that suggests people in a hierarchy tend to rise to their "level of incompetence," where they no longer have the ability to perform well.

Market Matching

A strategy used by businesses to align their offerings, products, or services with the demands and needs of the market.

Strategic Compensation

The design and implementation of compensation systems to align employee rewards with the organization's strategic objectives.

Business Objectives

Goals and targets that a business aims to achieve in a set period.