The Price Adjustments of a Dynamic Model Are Founded on the Intuition

question 46

Multiple Choice

The price adjustments of a dynamic model are founded on the intuition that

• A) upward pressure should be exerted on prices if actual GDP exceeds potential GDP.
• B) downward pressure should be exerted on prices if actual GDP falls short of potential GDP.
• C) downward pressure should be exerted on prices if unemployment in excess of the natural rate puts downward pressure on wages.
• D) upward pressure should be exerted on prices if employment above potential employment portends upward pressure on wages.
• E) all of the above.

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Definitions:

Essentially Bisexual

The theoretical notion suggesting that individuals inherently possess the potential for sexual attraction towards both genders.

Idea Expression

The process of articulating or conveying thoughts, concepts, or insights in communicable forms.

Tendency Toward Unity

The inclination or movement of individuals or entities to come together and form a cohesive group or structure.

Transcendence

The act of going beyond ordinary limits; in psychology, it refers to surpassing one's current self to achieve higher states of development or consciousness.