If the Economy Is on Its Short-Run Phillips Curve at the Natural

question 40

Multiple Choice

If the economy is on its short-run Phillips curve at the natural unemployment rate then, in the AS-AD model, real GDP is definitely

• A) equal to potential GDP.
• B) greater than potential GDP.
• C) less than potential GDP.
• D) increasing.
• E) decreasing.

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Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions, rather than external facts or evidence.

Environmental Conditions

Environmental conditions refer to the various physical and biological factors that affect the functioning and development of organisms, ecosystems, or human activities.

Observable Employee Behaviors

Actions or conduct of employees that can be seen and assessed by others in the workplace.

Reinforcer

In behavioral psychology, a stimulus that increases the probability of a preceding behavior being repeated when it follows that behavior.