As Actual Output Falls Below the Potential Level in the Short

question 99

Multiple Choice

As actual output falls below the potential level in the short run,which of the following is most likely to occur?

• A)More resources will become unemployed.
• B)The price level will increase.
• C)Real GDP will increase.
• D)Nominal GDP will remain constant.
• E)The natural rate of unemployment will fall.

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Definitions:

Performance

The act of carrying out or accomplishing an action, task, or function.

Equity Principle

A concept in organizational psychology and management that suggests fair treatment and rewards for employees, based on their contributions and efforts.

Goal Accomplishment

Goal accomplishment is the successful achievement of a set goal or objective, often resulting in a sense of satisfaction and progress.

Feedback

A process in which information about actions, performance, or behavior is given to individuals or groups to use as a basis for improvement or development.