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

question 53

Multiple Choice

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

• A) a reduction in the general level of prices
• B) an abnormally high rate of unemployment
• C) increases in real interest rates and real resource prices
• D) a reduction in imports

---

Definitions:

Symbolic Image

A representation that stands in for something else, conveying meaning through association or resemblance, often used in communication and thought processes.

Simple Organized Pattern

A basic and structured arrangement or sequence of elements or actions.

Behavior

Actions and responses of an individual, group, or system, which can be observed and measured.

Adjusting

The process of adapting or becoming accustomed to a new situation or environment.