An Inflationary Output Gap Exists When the Current Level of Output

question 46

Multiple Choice

An inflationary output gap exists when the current level of output is _______ full employment GDP.

• A) below
• B) above
• C) equal to
• D) decreasing rapidly relative to

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Definitions:

Rigid

Characterized by inflexibility or the inability to adapt to new situations, often leading to inefficiency or failure in changing environments.

Unwieldy

Difficult to handle, control, or manage due to size, complexity, or awkwardness.

Mechanistic Structures

Organizational structures characterized by rigid hierarchies, strict rules, and centralized decision-making, typical in stable environments.