When an Economy Is Temporarily Operating at an Output That

question 188

Multiple Choice

When an economy is temporarily operating at an output that is beyond its full-employment rate,

• A) excess supply in resource markets will eventually lead to lower resource prices, which will decrease costs and direct the economy toward full employment.
• B) excess demand in resource markets will lead to higher resource prices, which will increase costs and direct the economy toward full employment.
• C) lower wages and prices will quickly restore full employment.
• D) only restrictive fiscal policy will direct the economy back to full employment.

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Definitions:

Information System

A set of components that work together to manage and process data, transforming it into useful information for decision-making.

Collusion

A secret agreement or cooperation between two or more parties for a fraudulent, illegal, or deceitful purpose, often in business or trade practices.

Internal Control System

An internal control system encompasses the rules, procedures, and measures implemented by an organization to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.

Systems Design

The process of defining the architecture, components, modules, interfaces, and data for a system to satisfy specified requirements.