When the Economy Is at Its Potential Output Level,which of the Following

question 51

Multiple Choice

When the economy is at its potential output level,which of the following is true?

• A)The price level is higher than that expected by workers.
• B)The nominal wage is equal to the real wage.
• C)The unemployment rate is about 14 percent.
• D)The economy is producing its maximum sustainable output.
• E)The actual price level is less than the expected price level.

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Definitions:

Applied Research

Research conducted specifically to solve practical problems and improve the quality of life.

Functionalism

An early school of psychology that was concerned with how humans and animals use mental processes in adapting to their environment.

Charles Darwin

A British naturalist best known for his contributions to the science of evolution, particularly the theory of natural selection.

Structuralism

The first formal school of thought in psychology, aimed at analyzing the basic elements, or structure, of conscious mental experience.