When Output Is Less Than the Economy's Long-Run Capacity, Which

question 65

Multiple Choice

When output is less than the economy's long-run capacity, which of the following is most likely to occur?

• A) an abnormally low rate of unemployment
• B) reductions in real interest rates and real resource prices
• C) a sharp increase in imports
• D) a government budget surplus

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Definitions:

Indorser

A person who signs a document, typically a check or negotiable instrument, indicating their agreement or approval.

Accommodation Indorser

A party who endorses a negotiable instrument for the purpose of lending their credit to another party without direct benefit.

Contractual Liability

Contractual liability involves obligations that a party has agreed to assume in a contract, making them legally responsible for fulfilling the terms of the agreement.

Transfer Warranty

A guarantee in legal documents, especially in sales of goods, assuring the recipient that the transferor has valid title and that the transfer is rightful.