If All Prices Adjusted Immediately to Balance the Quantities Supplied

question 13

Multiple Choice

If all prices adjusted immediately to balance the quantities supplied and demanded for all goods and services:

• A)output gaps would not exist.
• B)output gaps would be positive more often than they would be negative.
• C)cyclical unemployment would be positive.
• D)potential GDP would rise much more quickly.

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Definitions:

Industrial

Pertaining to production or manufacturing environments, often involving heavy machinery and equipment.

Auxiliary Equipment

Equipment that supports the primary operation of a system but is not the main component, often providing additional functionality or safety.

Control Contacts

Components in electrical devices that make or break the electrical connection, often used in relays, switches, and circuit breakers to control the flow of electricity.

Manual Motor Starters

Devices designed to manually switch on and off motors while providing overload protection to prevent motor damage.