If Actual Output Exceeds Potential Output for a Prolonged Period

question 90

Multiple Choice

If actual output exceeds potential output for a prolonged period of time, we would eventually expect factor prices to:

• A)rise, causing the SAS curve to shift up (to the left).
• B)fall, causing the SAS curve to shift down (to the right).
• C)rise, causing the LAS curve to shift out to the right.
• D)fall, causing the LAS curve to shift in to the left.

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Definitions:

Managers

Individuals responsible for directing and overseeing the work of a group of people in an organization.

Performance

The act of carrying out or accomplishing tasks and duties, often measured against a set of standards or goals.

Performance Management

A systematic process by which an organization involves its employees in improving organizational effectiveness and achieving company objectives through a framework that includes goal setting, feedback, and performance evaluation.

Activities and Outputs

Refers to the tasks performed and the results achieved or produced in a work or project environment.