When the Economy Is at Full Employment and Investment Increases

question 389

Multiple Choice

When the economy is at full employment and investment increases, in the long run the price level will ________ and, if potential GDP does not change, in the long run real GDP will ________.

• A) increase; increase
• B) decrease; not change
• C) decrease; decrease
• D) increase; not change

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Definitions:

Voice

The expression of opinions, concerns, or suggestions, particularly in a context where such input is solicited to encourage participation or improvement.

Forms

Refers to types or variations of something, often used in administrative, survey, or data collection contexts.

Organizations

Entities, often comprising groups of people, structured to achieve particular goals or perform specific functions.

Grapevine Information

Informal channels of communication within an organization, often based on rumored information or gossip, which can spread rapidly.