Suppose the Current Situation Is Such That the Price Level

question 29

Multiple Choice

Suppose the current situation is such that the price level is 120, real GDP is $17 trillion, and GDP along the long-run aggregate supply curve is $16.6 trillion. What will take place to restore the long-run equilibrium?

• A) The price level will fall until long-run aggregate supply increases to $17 trillion.
• B) The price level will fall and money wage rates will rise until real GDP along the long-run aggregate supply curve is $17 trillion.
• C) Money wage rates will rise until real GDP reaches $16.6 trillion.
• D) Aggregate demand will increase until both short-run and long-run aggregate supply equal $17 trillion.

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Definitions:

Team-Based Structure

A team-based structure in an organization is a framework that emphasizes teamwork, with employees grouped into project teams or work-groups that operate semi-autonomously to accomplish specific tasks.

Structural Features

Refers to the inherent characteristics or properties that define the composition or arrangement of a system or entity.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that dictate how an organization's activities are coordinated and managed.

Production Management

The planning, coordination, and control of industrial processes to ensure that goods are produced efficiently, on time, and within budget.